Global equities declined Friday as Middle East tensions and oil supply fears unsettled investors, prompting renewed concerns about inflation and shifting expectations for interest rate cuts.
European stocks weakened alongside U.S. futures, while the U.S. dollar strengthened and Treasury yields rose, reflecting heightened demand for safe-haven assets.
The STOXX 600 index slipped 0.15% after earlier gains faded as traders reacted to surging oil prices and geopolitical uncertainty.
Crude markets climbed sharply, with U.S. oil nearing $85 per barrel and Brent crude approaching $88, marking their highest levels since mid-2024.
Qatar’s energy minister warned that prolonged conflict could disrupt Gulf exports, potentially driving oil prices toward $150 per barrel and triggering significant global economic damage.
Rising energy costs have forced investors to scale back expectations for central bank rate cuts, especially in the United States and Europe.
Money markets now anticipate roughly 35 basis points of Federal Reserve rate cuts this year, down sharply from 55 basis points projected just a week ago.
Amid the turmoil, global equities fell while the dollar strengthened and market volatility increased, as investors brace for prolonged geopolitical uncertainty.
