Summary
- International oil prices have climbed back above $100 a barrel, spreading concern about global inflation.
- Higher oil prices have fueled concerns over benchmark interest-rate increases, sending the US 10-year Treasury yield to its highest level in 18 months.
- Surging oil prices and rising yields are weighing on equities, with the US Nasdaq Composite and South Korea's Kospi tumbling 2.15% and 5.72%, respectively.
Forecast Trend Report by Period
Rising tensions in the Middle East have pushed international oil prices back above $100 a barrel, reviving concerns about global inflation. Higher oil prices are expected to deliver a shock even if the war in the Middle East does not become prolonged.
Brent crude futures for September delivery settled 7.04% higher at $100.69 a barrel on July 23. It was the first close above $100 a barrel since May 22, when Brent ended at $103.54, about two months earlier. Tensions intensified after Iran-backed Houthi rebels in Yemen attacked a Saudi vessel in the Red Sea.
The jump in oil prices fueled concerns over benchmark interest-rate increases, sending the yield on the 10-year US Treasury to its highest level in 18 months. Stocks also came under pressure. The Nasdaq fell 2.15% on July 23, while South Korea's Kospi tumbled 5.72% on July 24.
Hwang Jeong-su, New York correspondent, Korea Economic Daily hjs@hankyung.com
Korea Economic Daily
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