Oil surged to the highest level in almost four years with little sign of progress toward ending the Middle East conflict, weighing on risk sentiment despite a boost from megacap tech earnings.
Brent climbed as much as 7.1% to $126.41 a barrel, heading for a ninth straight day of gains, the longest winning streak since May 2022.
The commodity has surged more than 100% this year. Gains extended after Axios reported President Donald Trump was slated to receive a briefing on new plans for potential military action in Iran.
Futures contracts for the Nasdaq 100 erased gains of as much as 1.1%, after earlier being boosted by robust earnings from megacap companies such as Alphabet Inc. and Amazon.com Inc. MSCI’s Asia Pacific share index fell 1.4% and European equities were primed to drop 1% at the open.
The dollar gained and bonds slid as the surge in oil and a hawkish hold by the Federal Reserve sapped demand for fixed-income assets. Treasury 10-year futures dropped for a fourth day, while cash 10-year yields held near the highest since July. Yields on Japan’s 10-year notes rose to the highest since 1997.
