Oil Prices Surge: Stock Markets and Economies in Turmoil

Global stock markets were rattled on Friday as oil prices rose sharply, quelling Wall Street's hopes for an interest rate cut by the Federal Reserve this year. The continued conflict with Iran has cast a shadow over the markets, causing significant losses across major indexes.

The S&P 500 plunged by 1.5%, marking its fourth consecutive losing week — the longest in a year — while other indices such as the Dow Jones and Nasdaq also experienced steep declines. A late-afternoon surge in Brent crude to USD 112.19 a barrel exacerbated investor concerns.

Treasury yields have risen sharply, signaling the potential for increased mortgage and borrowing costs, which could slow down economic growth. As traders adjust expectations regarding interest rate changes, some speculate on future hikes, while the persistence of high oil prices continues to pose a threat to financial markets globally.