Finance

International energy markets experienced a major disruption as Brent crude oil futures crossed the $100 per barrel milestone. The price spike was driven by escalating military exchanges between the United States and Iran alongside Houthi rebel attacks on Saudi tankers in the Red Sea. This surge has restricted maritime transit through vital shipping corridors like the Strait of Hormuz and raised widespread stagflation fears.

Alphabet and Tesla dragged major indices lower following disappointing quarterly updates. Alphabet shares slumped roughly 7% as its elevated capital expenditure forecasts raised concerns regarding the near-term profitability of artificial intelligence investments. Concurrently, Tesla shares plummeted up to 15% after reporting missed profit expectations and negative free cash flow for the first time in two years.

The combination of geopolitical uncertainty and intensifying energy-driven inflation fears pushed benchmark bond yields significantly higher. The 10-year U.S. Treasury yield surged past 4.70%, marking its highest reading since the beginning of 2025. These elevated borrowing costs are applying broad downward pressure on risk assets and are expected to pull consumer mortgage rates upward.