Oil tops $100, European stocks drop on fresh Gulf attacks

On September 9, oil prices surpassed $100 per barrel for the first time since July, causing European stock markets to drop. The Dow Jones Industrial Average fell by 0.77%, the S&P 500 declined by 0.48%, and the Nasdaq Composite slipped by 0.64%. The MSCI gauge of global stocks also dropped by 0.52% after the U.S. market closed. Brent crude settled at $101.21 a barrel, while U.S. West Texas Intermediate crude increased by $3.02, or 3.25%, to $96.05 a barrel.

All three major U.S. indices ended the day lower. Meanwhile, yields on benchmark U.S. 10-year notes rose to 4.841%, the highest since November 2023. This was due to the Treasury Department's announcement of a higher buyback for 10-to-20-year government bonds than previously expected. Analysts believe a prolonged oil shock could maintain inflation pressures and complicate central banks' policy environment.

The euro rose ahead of the European Central Bank's policy decision on Thursday, as investors anticipate a rate hike due to inflationary concerns from the Iran conflict. The yen strengthened toward nearly seven-month highs against the dollar. Financial markets remain uncertain about the Federal Reserve's plans for the upcoming September meeting, as about 70% of surveyed economists expect rates to remain steady.