Brent Crude Surpasses $100, Driving Global Stock and Gold Declines

After Brent crude briefly rose above the $100‑per‑barrel mark, markets worldwide reacted sharply. U.S. equity indices fell, with the Nasdaq dropping more than 2% and the S&P 500 and Dow Jones each sliding over 1% as investors feared renewed inflation and tighter Federal Reserve policy. Gold prices also slipped, falling about 2% to roughly $4,030 per ounce, as higher energy costs raised inflation expectations and reduced the appeal of non‑yielding assets. The price surge was linked to escalating Middle‑East tensions: Houthi attacks on Red Sea tankers, Saudi‑led strikes, and the threat of broader disruptions in the Strait of Hormuz and Bab el‑Mandeb. OPEC’s announced production increase helped ease the rally, but geopolitical risk premiums remain elevated. Commodity‑focused funds such as the MSCI World ETF saw declines, and bond yields rose across major economies, reinforcing expectations of a possible Fed rate hike in September. Analysts warn that continued disruptions could push Brent toward $120 later in the year.