Overview
- Houthi strikes on tankers in the Red Sea and threats to block Saudi shipments have disrupted a second major Gulf route and helped drive Brent above $100 a barrel.
- Global equity markets slid with US major indexes down and Asian shares falling as investors sold riskier assets in response to the oil shock.
- Benchmark government bond yields jumped, with the US 10-year Treasury near 4.70 percent and several European yields at multi-year highs as investors priced higher borrowing costs.
- Weak results from major tech firms, notably Tesla and Alphabet, and heavy AI-related spending worsened the sell-off by raising doubts about near-term corporate profits.
- If fighting or shipping blockages continue, oil and borrowing costs could climb further, which would raise fuel and consumer costs and pressure central banks to consider tighter policy until tensions ease.