Global stock markets experienced sharp declines early Monday as rising oil prices rattled investor confidence. Brent crude surpassed $92 a barrel after reports of multiple commercial oil tankers being targeted near the Strait of Hormuz—renewing fears over energy security and inflation spikes.
Energy companies rallied slightly in response, but tech and retail sectors slumped amid broader sell-offs.
Geopolitical analysts link the attacks to escalating tensions between Iran and Western naval forces stationed in the Gulf. While no group has claimed responsibility, shipping insurers have raised their threat levels and premiums.
In short, the ripple effect of energy instability is once again pressuring fragile global economies.
Central banks across Europe and Asia are closely monitoring the situation, especially as inflation data remains volatile. In the U.S., the Federal Reserve may delay its expected rate cut if fuel costs continue rising into August.
Meanwhile, emerging markets heavily dependent on oil imports face renewed currency pressure, raising alarm over trade deficits and debt repayment capacity.
Investors are expected to stay risk-averse throughout the week, with safe-haven assets like gold and bonds gaining ground. All eyes are on OPEC’s emergency meeting scheduled for Thursday.
