Oil prices jump nearly 5% to $98 amid Middle East conflict, pushing German 10-year bund yields to 2011 highs.
Brent crude prices surged almost 5% to above $98 a barrel on Thursday as escalating tensions in the Middle East threatened global oil supplies. The Iran-aligned Houthis claimed attacks on Saudi oil tankers, while the U.S. conducted a 12th consecutive night of strikes on Iran, raising fears of further disruptions in key shipping routes like the Strait of Hormuz.
Germany’s 10-year bund yield climbed above 3.2% for the first time since 2011, reflecting heightened inflation concerns as oil prices approached the $100 mark. The European Central Bank held rates steady but signaled a hawkish stance amid renewed energy-driven inflation risks. The last time yields reached these levels, the euro zone was grappling with a debt crisis.
Equity markets retreated, with STMicroelectronics shares plunging 15% after an earnings miss. Alphabet’s announcement of an additional $15 billion in AI spending, pushing its annual outlay toward $200 billion, added to investor caution amid rising borrowing costs and geopolitical uncertainty.