Brent crude jumps nearly 4% to $104.18

• Brent crude rose nearly 4% to $104.18 per barrel as Middle East tensions increased uncertainty around global oil supplies.
• U.S. crude climbed 3.9% to $91.70, while major stock indexes in Europe and Asia declined.
• Rising Treasury yields also pressured equities after Federal Reserve minutes showed most officials expect another rate increase this year.

Brent crude rose just under 4% to $104.18 per barrel on Thursday as renewed tensions involving the United States and Iran increased concerns about global oil supplies.

Benchmark U.S. crude increased 3.9% to $91.70 per barrel, while Germany’s DAX fell 0.8%, France’s CAC 40 declined 1% and Britain’s FTSE 100 dropped 0.6%.

The move followed reports that the White House had asked the Pentagon to prepare possible strike options against Iran, adding to uncertainty around the conflict and energy markets.

Asian markets also weakened, with Japan’s Nikkei 225 down 1.4%, South Korea’s Kospi lower by 2.6% and Hong Kong’s Hang Seng down 1.3%.

The 10-year U.S. Treasury yield was around 5.32% after reaching 5.36% on Wednesday, while Federal Reserve minutes showed most officials expected another interest-rate increase during 2026.

The Federal Reserve raised its target range by 25 basis points in September to 3.75%–4%, its first rate increase since 2023, as officials continued to focus on inflation above the central bank’s 2% goal.

Higher energy prices and bond yields are adding pressure to global financial markets, with investors weighing the effects of geopolitical risk, borrowing costs and another possible Federal Reserve rate increase.