WTI crude hits $90.95 and Brent reaches $98.91 amid risk aversion and geopolitical concerns driving safe-haven flows.
Oil prices surged to six-week highs as escalating Middle East tensions fueled risk aversion, pushing WTI crude to $90.95 and Brent to $98.91. The rally extended gains of 4.7% and 5.1%, respectively, as investors sought safety in the USD and bonds.
The move followed a broader flight to quality, with 10-year Treasury yields rising 3 bps to 4.685% and the USD/JPY pair hitting a 40-year high. European equities declined, with the DAX down 0.7%, while S&P 500 and Nasdaq futures fell 0.6% and 0.8%.
Gold retreated 1.1% to $4,081 as the dollar strengthened, while the NZD lagged amid the risk-off sentiment. Markets await the ECB’s decision, with a September hike likely if inflation surprises upward.