Oil Surge and Gulf Conflict Roil Global Markets: Inflation Fears Revived

Asian shares dropped as oil prices exceeded $100 per barrel due to escalated conflict in the Gulf, causing concern about inflation. The U.S. launched strikes on Iran, affecting oil supplies. Tariffs and high Treasury yields added to financial stress, impacting global stock markets and currency exchanges.

Asian shares declined on Friday as oil prices surpassed $100 a barrel amid escalating Gulf tensions, impacting bond markets and raising new inflation concerns.

Brent crude steadied at $100.85 per barrel following attacks by Iran-aligned Houthis on Saudi vessels. U.S. strikes on Iran further stressed oil supplies, with the Gulf conflict showing no signs of ending, causing a significant oil price surge by 40% this month.

News of U.S. tariffs on goods from 60 partners compounded inflation worries, pushing Treasury yields to near-record highs. Wall Street fell overnight, with major tech companies Alphabet and Tesla troubling investors due to significant AI infrastructure expenses.