Global markets retreated while oil prices surged, reflecting heightened uncertainty after strong rhetoric from Donald Trump dampened expectations of a quick resolution.
Brent crude jumped over 7%, nearing $110 per barrel, as investors reacted to signals pointing to prolonged instability in energy supply dynamics.
Equity markets weakened globally, with European indices and Wall Street futures falling more than 1%, reversing earlier gains seen across Asian markets.
In Asia, benchmarks declined sharply, with Japan’s Nikkei 225 dropping 2.4% and South Korea’s KOSPI falling 4.7%.
Rising oil prices fueled concerns of renewed inflation pressures, pushing government bond yields higher as markets adjusted expectations for central bank policy.
The U.S. dollar strengthened as a safe-haven asset, pressuring major currencies and reflecting investor caution amid volatile global conditions.
Market focus has shifted to the Strait of Hormuz, a critical energy corridor influencing global supply and price stability.
Analysts highlight that market direction will hinge on energy flows, with investors closely tracking developments that could reshape inflation and growth outlooks.
