Global markets experienced sharp declines Thursday following an escalation in U.S.-Iran tensions, with oil prices spiking and equities retreating across major exchanges.
Brent crude, the international price benchmark, surged 5% to close at $77.86 per barrel after President Trump declared that a ceasefire arrangement with Iran had "ended" in response to fresh military strikes.
European indices fell more sharply than U.S. counterparts. The UK's FTSE 100 shed 1%, or 110 points, settling at 10,556. Germany's DAX fell 1.6%, while Spain's Ibex index declined 2%. The declines reflected concerns about geopolitical risk and Europe's greater energy dependence.
American indices moved lower, though declines were more modest. The S&P 500 fell 0.48%, the Dow Jones Industrial Average dropped 0.9%, and the Nasdaq Composite slipped 0.3%.
Asian markets absorbed heavier losses. Japan's Nikkei 225 ended down 2.1%, while China's CSI 300 fell 0.77%. South Korea's Kospi tumbled 5.5%, the largest decline in the region, with semiconductor shares leading the selloff.
The oil price spike rippled into fixed-income markets, where government bond yields climbed sharply as investors priced in higher inflation expectations. Germany's 10-year Bund yield rose 5 basis points to 3.034%, its highest close since July 11. Germany's two-year bond yield climbed 5 basis points to 2.637%, its highest level since June 22. The UK's 10-year gilt yield rose 9 basis points to 4.94%.
