Oil Reaches $100 Amid Middle East Conflict, Trade Tensions Between U.S. and Canada
Global oil prices briefly reached $100 a barrel as markets reacted to escalating military tensions between the United States and Iran, including reported strikes on US bases in Jordan and vessels near the Strait of Hormuz. The conflict has disrupted shipping through this critical waterway, raising concerns over global energy supply chains. Meanwhile, U.S.-Canada trade relations deteriorated further after President Donald Trump announced new import restrictions targeting Canadian goods like alcohol and dairy products. U.S. stock futures showed modest gains on Wednesday as investors weighed the geopolitical risks alongside central bank policy expectations. The European Central Bank is expected to raise interest rates amid inflation concerns linked to higher energy costs, while markets priced in a 60% chance of another Federal Reserve rate hike next week. Treasury yields also rose near multi-decade highs due to increased debt buybacks and investor demand for safe assets. Technology stocks were mixed as reactions to OpenAI's new AI model split investors between software declines and gains among chipmakers and data center firms.
Topics: Middle_East_conflict oil_prices stock_markets Treasury_bonds U.S.-Iran_relations