Oil prices surged to $100 per barrel as the U.S.-Israeli conflict with Iran showed no signs of resolution, causing global stocks to plummet on Thursday. The S&P 500 dropped 1.5%, the Dow Jones Industrial Average fell 1.5% (739 points), and the Nasdaq composite declined by 1.7%.
The focal point remained the oil market, with Brent crude reaching $101.59 per barrel. Concerns loomed over potential disruptions in oil production and transportation in the Persian Gulf, leading to fears of significant inflation worldwide.
Iran intensified attacks on oil facilities in Gulf Arab countries, halting cargo traffic through the crucial Strait of Hormuz. In response, the International Energy Agency (IEA) agreed to release a record 400 million barrels of emergency oil reserves, while the U.S. planned to release 172 million barrels from its Strategic Petroleum Reserve.
The G7 energy ministers convened in Paris to address the soaring prices, but market speculation persisted, driving global markets down. Analysts warned of continued volatility in oil prices, with the possibility of spikes to $140 per barrel. The conflict’s uncertainty since it began on February 28 has caused erratic fluctuations in financial markets worldwide.
European markets remained relatively stable, while Asian markets experienced declines. Major indices in Tokyo, Seoul, Hong Kong, Shanghai, and Australia recorded losses. Currency trading saw the U.S. dollar weakening against the Japanese yen and the euro.