Brent Oil Spike Drags S&P 500 Futures Lower

Brent oil’s surge above $100—briefly nearing $120 after the US attack on Iran—dragged S&P 500 futures sharply lower as investors priced in a global energy shock. Asian equities sold off heavily, with Japan’s Nikkei and other regional markets tumbling as fuel and shipping disruptions intensified. European equity futures also pointed lower while bond yields climbed globally on inflation fears. Tanker traffic through the Strait of Hormuz has stalled, pushing jet fuel and LNG prices sharply higher.

Equities

The FTSE 100 fell 1.2% on Friday, while the FTSE 250 dropped 0.8%, leaving both UK benchmarks with their sharpest weekly losses in almost a year. The decline came as oil prices surged and investors reacted to escalating conflict in the Middle East, which has disrupted shipping through the Strait of Hormuz. Brent crude rose above $90 a barrel during the session for the first time in two years. The move raised concerns about renewed inflation pressure and prompted traders to reduce expectations for Bank of England rate cuts. UK government bond yields rose sharply during the week, marking the largest increase in around three years.

Energy companies in London benefited from the jump in crude prices. Shell closed about 1.2% higher on Friday as stronger oil prices improved expectations for the company’s cash flow and earnings outlook. BP also ended the session roughly 0.6% higher as investors anticipated that sustained supply disruptions in the Gulf could support higher revenues for oil producers.

In the betting and gaming sector, Flutter Entertainment finished 2.4% higher after activist investor Parvus Asset Management doubled its stake in the company. The move drew attention to the growth potential of Flutter’s US sports betting operations through FanDuel. Investors interpreted the increased stake as a sign of confidence in the company’s strategy and its position in the expanding American sports wagering market.

Economic data also played a role in shaping sentiment. Halifax reported that UK house prices rose 1.3% year-on-year in February, marking the fastest annual growth since October. While the data pointed to resilience in the housing market, the lender warned that geopolitical uncertainty and the possibility of higher inflation could slow expectations for interest-rate cuts, which may eventually weigh on housing activity.

In the United States, Wall Street ended the week with broad declines. The S&P 500 closed 1.33% lower on Friday, while the Dow Jones Industrial Average fell 0.95%. The Nasdaq Composite dropped 1.59% by the closing bell. The losses followed a weaker-than-expected US jobs report, which suggested the labour market may be losing momentum.

The unemployment rate rose to 4.4% amid disruptions linked to winter weather and a healthcare workers’ strike. At the same time, oil prices surged sharply as the Middle East conflict intensified. US crude futures jumped more than 12% during Friday’s session, climbing above $90 a barrel, which added to worries about rising costs for businesses and consumers.

Several major US companies saw significant share price moves. BlackRock fell 7.1% after announcing limits on withdrawals from a large private credit fund. Regional lender Western Alliance dropped 8.4% after filing a lawsuit against Jefferies over loans connected to the bankrupt auto parts supplier First Brands Group. Jefferies shares fell 13.5% on the day following the legal dispute.

Travel companies were also under pressure. Airline stocks declined as higher fuel costs weighed on the sector, pushing the S&P passenger airlines index down more than 4%.

One of the strongest performers on Wall Street was semiconductor company Marvell Technology. Its shares closed 18.4% higher on Friday after the company issued a forecast for fiscal 2028 revenue that exceeded analysts’ expectations. The outlook boosted confidence in the firm’s growth prospects and lifted sentiment in parts of the semiconductor sector.

Forex & Commodities

The US dollar strengthened early on Monday as investors moved toward cash amid heightened geopolitical risk and rising energy costs. The euro traded lower against the dollar at $1.155, while sterling also weakened, changing hands at $1.333. The Japanese yen remained under pressure near ¥159 per dollar during Asian trading, and the dollar rose against the Swiss franc to 0.7795. Analysts noted that the United States’ position as a net energy exporter contrasts with Europe’s heavier reliance on imported fuel, which has weighed on European currencies as oil prices climb. The dollar’s rise also pushed US Treasury yields higher, reflecting expectations that inflation risks linked to energy prices may delay monetary easing.

Gold prices moved lower early on Monday as the stronger dollar reduced demand for bullion. Spot gold traded at $5,098 per ounce after declining earlier in the session, while investors also responded to rising US Treasury yields that increase the opportunity cost of holding non-yielding assets. Other precious metals also declined during morning trading, with silver priced at $84.42 per ounce. Platinum traded at $2,108 and palladium stood at $1,587.

Oil markets saw the most dramatic movement. Brent crude climbed sharply during Asian trading, briefly reaching $119.5 per barrel, while US West Texas Intermediate traded at $119.5. Prices surged after reports that producers in Iraq, Kuwait and the United Arab Emirates had begun cutting output amid rising regional tensions and growing risks to shipping through the Strait of Hormuz. Later in the session prices eased slightly following reports that G7 finance ministers may consider releasing strategic reserves through the International Energy Agency.