Key facts
- Oil prices hit their highest levels since May.
- AI stocks experienced a significant sell-off.
- US Treasury yields fell sharply as investors bought bonds.
- Shipping costs for crude oil have more than quintupled since the war began.
Oil prices climbed above $113 a barrel on Friday, reaching their highest levels since May, driven by concerns over potential supply disruptions from the conflict with Iran and soaring shipping costs. Brent crude traded at $113.73 per barrel, while US benchmark West Texas Intermediate crude rose to $100.08.
Global stock markets were largely lower, with a significant sell-off in artificial intelligence-related stocks weighing on major indices. The S&P 500 fell 1.2% and the Nasdaq composite tumbled 2.6% on Thursday, with Nvidia down 4.4% and Meta Platforms losing 7%.
Investors sought refuge in the bond market, with US Treasury yields falling sharply as demand for safer assets increased. The yield on the 10-year Treasury dropped to 4.97% from 5.13% as investors bought US government bonds.