Brent crude surged 3.4% to $101.25 as military strikes on Iranian tankers and Houthi attacks on Saudi infrastructure threaten global energy flows, pressuring broader equity markets.
Crude oil prices surged past $101 a barrel on escalating US-Iran tanker war, directly boosting oil-tracked instruments.
The S&P 500 extended losses as geopolitical tensions and surging oil prices weighed on broader market sentiment.
Energy sector stocks benefit from rising crude prices and potential supply disruptions.
The 10-year Treasury yield climbed to 4.8%, pressuring bond prices, as inflation fears from high oil costs mount.
Crude oil prices climbed above $101 a barrel on Wednesday as escalating military tensions between the U.S. and Iran stoked fears of prolonged energy supply disruptions. The S&P 500 slipped 0.3% while the 10-year Treasury yield hit 4.8% as investors braced for the inflationary impact of rising fuel costs.
Prices are surging due to direct military conflict between the U.S. and Iran, including the destruction of tankers, and Houthi rebel attacks on Saudi infrastructure, which threaten critical export routes.