Latest Finance-Economy News
Brent Oil Surges Above $100 on Strait of Hormuz Closure Fears
Brent crude has risen above $100 per barrel for the first time since 2022 due to the ongoing US-Iran conflict halting traffic in the Strait of Hormuz, where a fifth of global oil passes. Prices briefly spiked to nearly $120, with analysts warning of $150 if disruptions persist, exacerbating supply crunches.
This has triggered stagflation risks with high inflation and stagnant growth.
Asian Stocks Slide as Oil Pressures Mount
Asian markets opened lower with Japan's Nikkei 225 and South Korea's Kospi down over 1%, Hong Kong's Hang Seng off 0.55%, and China's Shanghai Composite falling 0.25%. Fears of helium supply issues hit chipmakers, while elevated oil prices pressure equities toward two weeks of declines.
Indian Nifty50 and Sensex tanked 2.06% and 1.93%, marking the steepest weekly fall in over a year.
US Stock Futures Point Lower Amid Oil Rally
North American stock futures inched down as oil soared above $100 despite supply boost efforts. The S&P 500 dropped 1.5% and Nasdaq 1.8% in prior session, with Dow swinging wildly but only 4.4% off highs.
Volatility persists from Iran war shocks, testing investor patience.
US Issues Licenses for Russian Oil Sales to Ease Supply
The US Treasury issued licenses allowing purchase of stranded Russian crude and petroleum, amid efforts to counter supply disruptions. The Energy Department plans to release 172 million barrels from Strategic Petroleum Reserve, part of IEA's 400 million barrel initiative.
Trump warns 'watch what happens' as markets react.
Treasury Yields Spike on Inflation and War Concerns
US 10-year Treasury yield hit 4.255%, highest since February, up 4.9 basis points, as Iran attacks raise oil-driven inflation fears. Traders now see 47% chance Fed skips all 2026 rate cuts, up from 3% last month.
Short-end yields vulnerable until Strait of Hormuz clarity emerges.
Dollar Strengthens, Yen Weakens to 159.4 Low
Dollar rose to three-and-a-half-month high against currencies, with yen at 159.4, lowest since July 2024 despite Japanese intervention hints. Euro fell to seven-month low on energy price fallout from Iran war impacting eurozone growth.
Rupee expected in 91.45–92.75 range amid global turmoil.
European Markets Decline on Energy Squeeze
UK FTSE down 0.5%, Germany's DAX 0.2%, France's CAC 0.72% as higher energy prices dent terms of trade and growth. ECB faces dilemma from inflation and weak economy amid Iran conflict fallout.
Bond investors grapple with elevated energy prices and rates volatility.
Iran Conflict Fuels Stagflation Warnings
US-Iran war slows global oil flow, filling storage tanks and prompting producers to cut output, risking stagflation with high inflation and stalled growth. Central banks lack tools for this scenario, unlike past shocks from tariffs or COVID.
Diversified portfolios advised but Treasuries and gold also pressured.
Private Credit Funds Face Redemption Exodus
Wall Street's private-credit boom sputters as investors pull out, with Cliffwater's $33B fund seeing 14% redemption requests, paying only 50% this quarter. Firms face tough decisions endangering profits amid market turmoil.
Opportunities eyed in rates, government bonds, and convertibles from shifting inflation.
Qantas Settles COVID Class Action for AUD 105M
Australian airline Qantas agreed to pay AUD 105 million to settle a class action over COVID ticket sales without admission of liability. Shares dipped 0.5% in early trade amid broader market pressures.
This marks a key resolution from 2020 disputes.
China Firm Posts First Annual Profit Amid Tensions
A Chinese company reported its first-ever annual profit of around 306 million yuan, shy of estimates, with revenue at 6.5 billion yuan. Achieved despite US-China critical minerals deal talks and tariff revival efforts.
Markets watch for equity impacts from geopolitical strains.