Global Markets Tumbling as Gulf Oil Crisis Intensifies

Shares across Asia plummeted Thursday with a 9% surge in oil prices pushing costs above the $100 threshold, following reports of ships struck in Gulf waters and oil terminals closing. This spike is set to exacerbate inflation and drive up borrowing costs globally.

Investors viewed the International Energy Agency's massive reserve release of 400 million barrels—its largest ever—with skepticism. The U.S. also announced a release of 172 million barrels starting next week. Both Brent crude and U.S. crude benchmarks climbed 9%, effectively continuing an upward trend from the prior day.

The impact was felt on stock indices worldwide. The MSCI's broad Asia-Pacific index excluding Japan slid 1.6% and Japan's Nikkei tumbled 1.5%. Meanwhile, global futures markets saw the S&P 500 and Nasdaq slipping by 1%, adding to concerns from further geopolitical tensions in the Gulf.