world-economy

Energy Crisis Jolts Markets as Middle East Tensions Escalate

U.S. equities tumbled Thursday as investors reassessed the economic fallout from renewed Middle East conflict. Brent Crude surged above $100 per barrel following reports of tanker attacks off Saudi Arabia and 12 consecutive nights of strikes. West Texas Intermediate jumped 6% to $92, up more than 28% from earlier lows below $70. The S&P 500 posted its biggest decline in a month as the 10-year Treasury yield broke through 4.7%, reaching its highest level since January 2025. Markets had initially weathered the escalating tensions, but the confluence of triple-digit oil prices and rising rates proved impossible to dismiss. Elevated energy costs threaten to reignite inflation while pressuring consumer spending, resurrecting stagflation concerns that plagued markets during earlier conflict phases.