Brent oil rises to a two-month high amid US strikes on Iran
Futures on Australia’s ASX stock index fell by 0.9% after new US military strikes on Iran. This indicates a likely significant drop in the Australian market at the opening of trading, ABC News Australia reports.
Oil price surge
Amid an escalation of hostilities between the United States and Iran, Brent crude futures rose by 5.3% to $95.26 per barrel. Within several hours, the price of this benchmark grade of oil increased by approximately $4.70.
According to ABC News Australia, Brent reached its highest level in two months. The rise in oil prices intensified investor concerns about accelerating inflation.
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Bonds and currencies
Against this backdrop, global markets saw a sell-off in government bonds, pushing their yields to multi-year highs. The yield on 10-year US government bonds rose to 4.8%, the highest level since January 2025.
The US dollar strengthened, while the market assessed the probability of a Federal Reserve rate hike at the end of September at 68%. The Australian dollar weakened slightly to 70.5 US cents. ABC News Australia also reported significant losses on Wall Street amid inflation concerns.
