oil prices red sea tensions drove crude higher in European trade, as markets tracked rising risks to shipping near Saudi Arabia’s Jeddah port.
WTI crude climbed 3.5% to $87.30. Brent crude rose about 4% to $94.35. The move came as the Middle East conflict spread to the Red Sea, adding to concerns about energy supply disruption after the Strait of Hormuz closure.
Oil Prices Red Sea Risks Deepen
Shipping to and from Jeddah port is now under threat, according to the report. As a result, traders kept their focus on the risk of wider damage to global energy flows. With little else on the European morning agenda, the market centered on that development.
Meanwhile, other asset classes also reacted to the rise in oil prices red sea concerns. Bond yields moved higher, with the 10-year Treasury yield at 4.64%. In Europe, France’s 10-year yield neared 4%, which the report said would mark the highest level since the global financial crisis.
Germany’s 10-year yield held near 3.18%. That level is roughly its highest since 2011.
Broader Market Reaction Builds
The dollar stayed firm against major peers as yields rose. EUR/USD was little changed at 1.1405, with large option expiries at 1.1400 helping keep price action in place for now. USD/JPY also remained near 40-year highs above 163.00 as traders assessed the latest headlines.
European stocks edged a little higher. However, U.S. futures came under pressure as tech shares failed to build on the prior day’s bounce. S&P 500 futures fell 0.3%, while Nasdaq futures dropped 0.9%.
Additionally, gold showed some strength. The metal rose 1.1% to $4,120. Buyers have defended the $4,000 level this month and are looking for a first monthly gain in five.
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Source: InvestingLive
