As Oil Supply Disruptions Increase, Stocks Drop – Europe Market Wrap
Stocks fell around the world as oil prices continued to rise amid growing interruptions to petroleum transport operations in the Middle East. A global bond index reversed its 2026 gains.
S&P 500 futures and European markets fell 0.4%. An index of Asian stocks fell 1.2%. Brent briefly rose beyond $100 per barrel after Iraq halted oil terminal activity following an attack on two ships. Oman temporarily evacuated a crucial export hub, while Iran upped its attacks on Dubai.
According to the IEA’s monthly report, the conflict is causing the most significant disruption in oil markets ever, affecting 7.5% of world supply and an even higher share of exports.
The rise in prices underscores concern that the Middle East war may disrupt energy markets for an extended period of time, with measures to mitigate the impact providing little respite thus far. The commodity is driving asset class movements as traders worry that rising fuel costs would reignite inflation and stifle economic development.
The Dollar and gold both moved 0.1% higher. Bond prices in the UK and the Eurozone fell in tandem with those in Asia. US Treasuries increased modestly, with the 10-year yield falling 1 bps to 4.22%.
