Tuesday Jul 14, 2026
Tuesday Jul 14, 2026
Tuesday, 14 July 2026 06:40 - - {{hitsCtrl.values.hits}}
Global markets fell sharply on Monday as escalating conflict in the Gulf and Iran’s claim that it had closed the Strait of Hormuz fuelled a surge in oil prices, reviving concerns over inflation and the outlook for interest rates.
Asian equities led the decline while investors shifted toward the US dollar and government bonds amid growing geopolitical uncertainty. The renewed tensions also cast a shadow over the upcoming corporate earnings season, where expectations for technology and artificial intelligence companies remain exceptionally high.
Brent crude rose 4.3% to $79.31 a barrel, recovering significantly from its recent low of just above $70, while US West Texas Intermediate crude climbed 4.4% to $74.62.
The gains followed reports of intensified military activity in the Gulf and Iran’s assertion that it had shut the Strait of Hormuz after recent attacks on commercial shipping.
Japan’s Nikkei fell 2.2%, extending losses from the previous week, while the MSCI Asia Pacific index outside Japan dropped 1.8%.
South Korea’s KOSPI suffered the steepest decline, tumbling 7.6% after losing nearly 8% the previous week as investors continued reducing exposure to semiconductor stocks following months of strong gains.
US equity futures also pointed lower. S&P 500 futures fell 0.6%, while Nasdaq futures lost 1.3%. European markets were also set for weaker openings, with futures for the Euro STOXX 50, Germany’s DAX and Britain’s FTSE all trading lower.
Higher oil prices pushed US Treasury yields higher as investors reduced expectations that the Federal Reserve would ease monetary policy.
Two year Treasury yields climbed to their highest level since early 2025, while futures markets priced in roughly 39 basis points of additional tightening by year end.
The US dollar index remained firm at 101.13.
The euro edged lower against the dollar as Europe remains more dependent on imported energy than the United States, making the region more vulnerable to sustained increases in oil prices.
The Japanese yen weakened slightly after recent gains driven by comments from Japan’s finance minister about encouraging domestic pension funds to increase investments at home.
Sterling also slipped ahead of a significant week in British politics as Labour prepares to appoint Andy Burnham as party leader before he is expected to become prime minister later this month.
