Oil hovers around $100 as US bonds suffer their worst quarter since 1994

Oil prices hovered near $100 per barrel on Thursday, with the US benchmark West Texas Intermediate settling around $92.80. This came as Gulf crude shipments were recovering, and a deal to end the conflict with Iran was yet to be brokered. Saudi Arabia had partially reopened the East-West pipeline, bypassing the Strait of Hormuz.

Iran had proposed a response to the US, demanding the lifting of its blockade, release of frozen assets, and easing of oil sanctions for reopening the strait. However, US President Donald Trump remained firm, stating that either he would "blow them up" or reach a deal, and predicting the war would conclude soon, one way or another.

European markets were in decline, with the Stoxx 50 and Stoxx 600 indices falling by 1% and 1.5%, respectively. In the US, stocks opened lower and ended the session flat. European shares were affected by softer-than-expected inflation data in Germany, France, and Italy, which were driven by energy prices. In Asia, Japan's Nikkei 225 rose almost 2%, following strong results from chipmakers, while South Korea's Kospi also gained over 2%, buoyed by a record monthly export increase of 83.5%. Chinese and Hong Kong markets had closed for National Day holidays.

On Wall Street, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw slight declines, with the 10-year US Treasury yield peaking at 5.3%, marking its largest quarterly increase since 1994. This surge in bond yields, paired with softer growth expectations, led to US bonds teetering and investors preparing to focus on the upcoming September US jobs report.