Global oil prices surged on fresh supply concerns, with crude trading above the USD100 mark and Brent climbing close to a multi‑year high of USD 120 amid continuing hostilities in West Asia. Crude oil rose over 3 per cent to $102.73, while Brent gained more than 3 per cent to USD 115.98, reflecting heightened geopolitical risk premiums as markets brace for potential disruptions to energy flows from the region.
Notably, in an interview with the Financial Times, US President Donald Trump said the US could “take oil in Iran” if needed, claiming that Iran’s Kharg Island export terminal could be seized easily. Trump also suggested that talks were progressing and a deal could be possible soon, while referring to increased tanker movement through the Strait of Hormuz, comments that kept energy markets and risk appetite on edge.
US equities ended sharply lower on Friday, weighed down by broad-based selling across key sectors. Losses in technology, financials and consumer services dragged the major indices into the red, with the Dow Jones Industrial Average sliding 1.7 per cent to settle at a six-month low. The S&P 500 also fell 1.7 per cent, while the Nasdaq Composite underperformed with a 2.2 per cent decline.
Elevated U.S. Treasury yields remained a key headwind for equities, prompting investors to cut exposure to risk assets. Technology stocks bore the brunt of the sell-off as traders booked profits in heavyweight mega-cap names after their recent rally, exacerbating losses in the broader market.
Notably, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating Middle East tensions. The prices later dropped significantly after the announcement of coordinated oil reserve release by major G7 economies. The oil price, although at a multi-year high, were still lower than its all time high of USD 147 per barrel seen in July, 2008. The recent hike was also lower than USD 130 per barrel price that was hit in 2022 during the Russia-Ukraine crisis.
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