Oil prices jump 5% on Middle East tensions and US hurricane threat
Global bond market sell-off continues and stocks fall amid reports White House has asked to see options for more strikes against Iran
TL;DR
- Brent crude prices rose by 5% to $105.3 a barrel due to Middle East tensions and a hurricane threat.
- Global bond and stock markets experienced sell-offs.
- UK 10-year government bond yield reached its highest level since July 2007.
- Market swings followed a report that the White House asked the Pentagon to draw up options for strikes against Iran.
- Attacks on tankers in the Strait of Hormuz have increased, raising supply concerns.
- Shell and Chevron shut down production in the Gulf of Mexico due to Hurricane Isaias.
- Danish shipping group Maersk is increasing its emergency fuel surcharge.
- Rising energy prices have fueled inflation fears and expectations of further interest rate hikes.
- Global bond yields, including those in France, Germany, and the US, rose.
- Global stock markets, including Japan's Nikkei, South Korea's Kospi, Europe's Stoxx 600, and the UK's FTSE 100, experienced declines.