Global Energy Shock | Crude Oil Tops $100, Global Stock Markets Sizzle Amid War
Treasury yields rose in the bond market amid rising inflation and concerns that the Federal Reserve may cut interest rates less than expected. On Thursday, Brent crude oil prices again surpassed $100 as Iranian attacks targeted ships in the region’s waters.
The ongoing war between Iran and the U.S.-Israel coalition in West Asia, with no clear end in sight, has sent shockwaves through global financial markets. On Thursday, crude oil prices crossed the psychological $100-per-barrel mark, rattling markets from Wall Street to Asia. Amid heightened uncertainty, investors flocked to safe-haven assets, causing major global indices to plunge. The S&P 500 fell 1.5%, the Dow Jones Industrial Average dropped 1.6%, and the Nasdaq Composite slid 1.8%, marking renewed volatility after a brief period of relative calm. Brent crude surged to $101.59 per barrel.
Treasury yields also rose as concerns over rising inflation and reduced expectations of Federal Reserve rate cuts weighed on the bond market. Brent crude once again breached the $100 mark, fueled by Iranian attacks on vessels in the region’s waters, as the U.S.-Israeli military campaign against Iran shows no signs of slowing.
Thursday’s key developments included attacks on commercial vessels near the Strait of Hormuz and Iraq’s Basra port, intensifying pressure on the oil-rich Gulf region and raising global energy concerns.
The U.S.-led air campaign in Iran has now entered its 14th day, while the Israeli military continues targeting Iran and its Hezbollah allies in Lebanon, displacing over 800,000 people so far.
Commercial Shipping Impact
As of Thursday, at least 19 commercial vessels have been damaged in the conflict. According to the U.S.-overseen coalition’s Combined Maritime Forces (CMF), 16 ships were attacked in the Gulf and surrounding waters by Wednesday night. In addition, a Saudi oil rig was hit, and Iranian shelling near Basra damaged two ships. Another vessel was targeted near the UAE coast.
A Japanese-flagged container ship, “One Majesty”, operated by Mitsui OSK Lines, was damaged while anchored in the Persian Gulf. All crew members are safe, and the ship remains operational. Mitsui reported that the cause and extent of the damage are still under investigation.
The crew felt an initial impact near the ship’s aft section, and later discovered damage while anchored roughly 60 miles (96 km) southwest of the Strait of Hormuz.
Additionally, a Mitsui-operated oil tanker sustained minor damage in the Gulf of Oman from falling debris. The tanker has since left the area, and the company is investigating the incident.