Brent crude hits $101.21 as U.S.-Iran tensions drive Wall Street lower
Oil futures crossed the $100 barrier amid escalating military conflicts, pushing major U.S. indices into their lowest session since May.
Wall Street closed Wednesday in negative territory, with all three major U.S. benchmarks posting losses. The Dow Jones Industrial Average finished down 0.77 percent, the S&P 500 declined 0.48 percent, and the Nasdaq Composite dropped 0.64 percent. Global equities also retreated, with MSCI stocks down 0.52 percent.
The primary driver was oil prices breaching the $100 threshold. Brent crude futures settled at $101.21 a barrel, a gain of 3.4 percent for the day. West Texas Intermediate crude CLc1 rose to $96.05, an increase of 3.25 percent or $3.02. These were the highest closing prices recorded since May.
Iran stated it had launched attacks on ten vessels near the Strait of Hormuz following the U.S. sinking of five Iranian oil tankers. The conflict has raised concerns over supply disruptions and sustained inflationary pressure.
Simultaneously, yields on benchmark 10-year U.S. notes climbed to 4.841 percent, a rise of 3.66 basis points. This level represents the highest yield seen since November 2023. The Treasury Department announced it would purchase up to $6 billion in government bonds maturing between 10 and 20 years, increasing from an earlier signal of $4 billion.
