Brent crude tops $100 as rising yields drag US stocks lower
Brent crude has surged past $100 as escalating US-Iran hostilities and Houthi attacks on Saudi infrastructure, including the East-West pipeline, trigger a global equity sell-off. Markets are now bracing for the impact of these supply disruptions and rising energy costs ahead of upcoming inflation data and the ECB's rate decision.
Reports from GN markets/commodities (en-US) indicate that Houthi strikes on Saudi Arabia’s East-West pipeline are the primary driver behind the latest spike in Brent crude. The source also notes that Iran launched four missiles at two US-escorted vessels in the Strait of Hormuz, while flights have been suspended at Jeddah airport.
Source: GN markets/commodities (en-US)France 24 reports that Asian equities have broadly declined as Brent crude held above $101, with investors bracing for potential rate hikes by the ECB and Fed. The outlet notes that Iran has expanded its no-go zone in the Strait of Hormuz and struck a US base in Jordan, while Houthi rebels intensified attacks on Saudi oil infrastructure.
Source: France 24The conflict has effectively closed the Strait of Hormuz, with the US military reporting the destruction of five Iranian tankers, while President Trump warned that elevated energy costs may persist through the November midterms. Meanwhile, the 10-year Treasury yield briefly climbed to 4.85%, its highest level since late October 2023, before retreating slightly.
Source: GN auto markets/bonds: interest ratesUS equities fell on Wednesday as Brent crude surpassed $100 per barrel and Treasury yields remained elevated, pressuring rate-sensitive sectors.
Source: GN auto markets/bonds: treasury yields
