Global stocks edged lower Wednesday as volatile oil prices and uncertainty surrounding the U.S.–Israeli stance toward Iran unsettled investors and heightened concerns about inflation.
Markets remained cautious amid fluctuating crude prices and fears the conflict could disrupt global energy flows, threatening economic growth and financial stability.
Oil traded unevenly but avoided the extreme swings seen earlier in the week. Brent crude rose roughly 2% to $89.47 per barrel after dipping overnight.
Reports suggested the International Energy Agency may consider its largest-ever strategic reserve release to stabilize crude markets if geopolitical tensions intensify.
European equities weakened, with the STOXX 600 falling 0.7%, while Asian markets gained. Japan’s Nikkei rose 1.7% and South Korea’s Kospi advanced 1.75%.
Investors are closely watching the Strait of Hormuz, a critical global oil route, amid fears the conflict could threaten shipping and spark an energy shock.
The U.S. dollar strengthened as a safe-haven asset, gaining more than 1% against major currencies since the conflict began, outperforming gold and the Swiss franc.
Meanwhile, rising bond yields and concerns about private credit exposure and AI-driven disruption added pressure, as investors awaited the latest U.S. inflation data.
