Brent Crude Surges Above $119, Asian Markets Crash
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- Brent crude briefly rose above $119 per barrel, up from roughly $70 before the war with Iran began.
- Iran intensified attacks on oil and gas facilities in the Persian Gulf in response to an Israeli attack on a natural gas field, raising fears of prolonged Middle East production disruptions.
- Asian and European stock indexes fell sharply (Japan -3.4%, Germany -2.8%, South Korea -2.7%) as oil prices surged early Thursday.
- U.S. markets limited losses, with the S&P 500 ending down 0.3% after an early 1% dip, the Dow down 0.4%, and the Nasdaq down 0.3%.
- Treasury yields rose then fell, with the two‑year yield peaking at 3.96% before receding to 3.79%.
- President Donald Trump and other countries made short‑term moves to curb oil price spikes, but markets want longer‑term risk reduction, including clearing the Strait of Hormuz.
- Israeli Prime Minister Benjamin Netanyahu said Israel would hold off further attacks on the Iranian gas field at Trump’s request.
Why it matters: Oil‑dependent economies and investors in Asian equities felt the pain of the price shock, while U.S. firms with less Middle‑East exposure escaped the worst; the episode underscores the market’s sensitivity to Middle‑East supply risks and the demand for stable oil flows through the Strait of Hormuz.
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