Oil prices jumped over 5% and global stock markets tumbled after US President Donald Trump declared the ceasefire with Iran was “over” following fresh strikes between the two nations around the Strait of Hormuz. Brent crude spiked to a daily high of $79.26 a barrel, while gas prices also rose, stoking inflation fears and driving government bond yields higher.
In Europe, the UK’s FTSE 100 fell 1% to 10,556, Germany’s Dax dropped 1.6%, and Spain’s Ibex lost 2%. Wall Street also opened lower, with the S&P 500 down nearly 0.5%, the Dow Jones sliding 0.9%, and the Nasdaq slipping 0.3%. Asian markets saw sharp declines: Japan’s Nikkei ended 2.1% lower, China’s CSI 300 fell 0.77%, and South Korea’s Kospi tumbled 5.5%, hit by a sell-off in semiconductor shares.
Eurozone government bond yields rose to their highest levels in almost a month. Germany’s 10-year yield climbed 5 basis points to 3.034%, while the two-year yield rose to 2.637%. The UK 10-year gilt yield surged 9 basis points to 4.94%. Energy stocks such as BP, Shell, and Centrica led gains on the FTSE 100, while travel and technology shares fell amid concerns over fuel costs and the AI boom.
In other news, Dutch prosecutors announced legal action against Tata Steel’s Dutch branch over alleged deliberate discharge of harmful substances, including toxic emissions from coke oven gas plants. The company faces accusations of failing to carry out sufficient maintenance and operating without authorisation. Tata Steel IJmuiden said it takes the concerns seriously and continues to take improvement measures.
