Trading Day: $100 oil bites

Oil prices soared above $100 a barrel on Wednesday as conflict in the Middle East intensified, causing global stocks to fall across the board. The U.S. Treasury announced plans to triple bond buybacks, driving bond yields to record highs. Investors are uncertain about which currency could replace the Japanese yen as the funding currency of choice in global FX carry trades.

Iran announced it had attacked 10 ships near the Strait of Hormuz in retaliation for the U.S. sinking of five Iranian oil tankers, marking the biggest wave of shipping attacks since the six-month conflict began. The U.S. has imposed trade restrictions on Canadian goods, further escalating tensions. Despite the economic turmoil, global growth remains robust, with asset managers seeking ways to mitigate risks.