Oil regains power over markets as prices near $100 mark again

New York: Oil prices rose on Wednesday, with Brent crude climbing more than 2 percent to move back toward the $100 per barrel mark, as fresh tensions linked to the US-Iran situation weighed on global markets. The spike came as investors reacted to reports of renewed strikes and retaliatory actions involving the two countries, raising concerns over energy supply stability.

The increase in crude prices added pressure on equity markets in the United States, where major indices slipped from recent record highs. The S&P 500 fell around 0.6 percent, while the Dow Jones Industrial Average dropped nearly 445 points. The Nasdaq Composite also declined about 1 percent, reflecting broad-based weakness across sectors.

Market sentiment was further impacted by rising bond yields, with the US 10-year Treasury yield climbing alongside oil prices. Higher yields typically increase borrowing costs, which can weigh on corporate investment and economic growth expectations.

Despite the pullback, analysts noted that optimism linked to strong corporate earnings and artificial intelligence-driven growth has continued to support markets in recent weeks. Some stocks still posted gains, including companies reporting stronger-than-expected quarterly results and increased shareholder returns.

Energy markets remain highly sensitive to geopolitical developments, particularly concerns about supply routes such as the Strait of Hormuz, which plays a critical role in global oil transportation. Any disruption in the region is closely watched by investors due to its potential impact on inflation and global economic stability.

Broader global markets also reflected mixed sentiment, with declines in several European indices and varied performance across Asian markets, underscoring ongoing uncertainty in international financial conditions.
(With AP inputs)