Oil rose above $110 as there are no signs of an end to the war with Iran despite Trump's pressure for a deal
Kyiv • UNN
The price of Brent rose to $111 due to the war between the US and Iran. Risks of oil supply blockades are provoking stock market declines and rising interest rates.
Global oil prices continue to rise sharply amid the war between the US and Iran and the lack of signs of a quick end to the conflict. Brent crude rose to $111 a barrel after an almost 8% gain last week, while US WTI exceeded $107. This was reported by Bloomberg, according to UNN.
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Investors fear that the hostilities could lead to an actual blockade of the Strait of Hormuz—one of the world's key oil transportation routes.
As a result, global markets reacted with a new sell-off of assets: S&P 500 futures remained under pressure after the index fell by more than 1% on Friday, while Asian stock exchanges are preparing to open lower.
Markets fear a new wave of inflation
Amid the spike in energy prices, traders increasingly expect central banks to raise rates. The yield on Japan's 30-year bonds reached 4% for the first time since 1999, while the yield on similar US Treasury bonds exceeded 5%—a maximum over the last two decades.
Analysts warn that the situation in the oil market remains extremely volatile. According to Elias Haddad, head of market strategy at Brown Brothers Harriman, the lack of clear prospects for ending the conflict and the reduction in global oil reserves could cause a further increase in energy prices and intensify pressure on both stock markets and the global economy.