Brent crude exceeds $100 as US-Iran tensions impact global markets

Brent crude oil prices have surpassed $100 per barrel for the first time since July, driven by escalating military tensions between the United States and Iran in the Gulf. This surge has triggered a downward spiral in global financial markets, as investors fear that a renewed oil shock could reignite inflation and force central banks to tighten monetary policy.

Major stock indices have faced significant losses. In the United States, the Dow Jones Industrial Average fell for a third consecutive session, dropping 405 points. India’s Sensex also declined by 457 points. Australia’s S&P/ASX 200 experienced one of its worst sessions in months, losing 92 points (-1.03%) and erasing approximately $58 billion in market capitalization at its intraday low.

The spike in energy costs has shifted expectations for central bank actions. In Australia, markets now estimate a 79% probability of a rate hike by the Reserve Bank of Australia during its September 29 meeting, up from 64% earlier in the day. Analysts suggest that markets are no longer merely reacting to risk, but are increasingly sensitive to unexpected shifts in economic data and geopolitical developments.