Brent Crude Surges to $109.97 as Strait of Hormuz Tensions Threaten Saudi Exports
Global bond yields reached new highs and share markets fell as soaring oil prices fueled inflation fears amid escalated tensions involving the United States, Iran, and Houthis.
Global bond yields spiked to record levels on Friday while sharemarkets slumped as surging oil prices intensified inflation concerns. Brent crude climbed to a four-month high of $109.97 a barrel after a 6 per cent overnight jump, capping a weekly gain of nearly 13 per cent. Maritime traffic through the Strait of Hormuz remains restricted due to ongoing military exchanges between the United States and Iran. Simultaneously, Houthi forces seized control of Yemen's port of Mocha, threatening Saudi oil exports in the Red Sea. Helima Croft, head of global commodity strategy at RBC Capital Markets, stated that maritime traffic through the Bab el-Mandeb is gravely imperiled. She tipped Brent could reach $121.99 a barrel later this year if a full-blown Saudi-Houthi war resumes. President Donald Trump suggested the conflict could extend beyond the November midterm elections. Consequently, bond yields surged globally on heightened inflation fears. The benchmark 10-year Treasury yield climbed 2 basis points to 4.9708 per cent, its highest in three years and just under 5 per cent. The 30-year yield scaled another 19-year top at 5.3803 per cent.
