Investors monitor inflation trends and central bank policies as oil again crosses the symbolic $100 level.
Global equity markets have weakened, with Brent crude climbing above $100 per barrel as intensifying conflict in the Middle East fuels concerns about energy‑driven inflation.
The benchmark contract reached $100.19 on Wednesday, the highest point since July 24, when a U.S.–Iran memorandum of understanding was active, before easing slightly.
The US forces struck five Iranian crude‑oil tankers overnight, prompting Iran to respond with missile attacks on American positions in Jordan and on shipping vessels.
Secretary of State Marco Rubio pledged that the United States will continue targeting Iranian oil tankers in retaliation for attacks on U.S. warships.
Wall Street’s three primary indices — the S&P 500, Dow Jones Industrial Average and Nasdaq Composite — each posted modest declines. European equities fell to their lowest levels in a week, especially among industrial and banking shares. Canadian blue‑chip futures also slipped modestly.
Asian markets showed mixed movement, while technology shares kept rising after a July trough, buoyed by the artificial‑intelligence boom.
Swissquote senior analyst Ipek Ozkardeskaya told Reuters that risk appetite stayed weak amid rising oil prices driven by the ongoing war.
He noted that summer had been filled with hope for a peace agreement, but that optimism is fading as September approaches.
Manish Kabra, a multi‑asset strategist at Societe Generale, described $100 as a psychological threshold rather than a fundamental economic level.
He said crude would need to reach $150 to significantly dampen demand, and rising diesel prices could exacerbate inflation and services costs.
The rise in oil prices heightens concerns that higher inflation will prompt central banks to adopt tighter monetary policies.
The European Central Bank is expected to raise rates on Thursday, and the U.S. Federal Reserve will convene next week to decide on a possible rate increase.
Bond markets are under pressure as well; inflation worries have pushed yields higher in recent weeks as traders anticipate further tightening.
Since the United States and Iran resumed hostilities at the end of August, benchmark bonds in the United States, Japan and several European nations have climbed to multidecade highs, raising concerns about borrowing costs and the stability of global financial institutions.
