Middle Eastern geopolitical tensions and rising energy costs influenced global markets on Thursday as Brent crude futures reached $96 per barrel. The price increase followed reports that Houthi forces in Yemen targeted Saudi Arabian oil tankers in the Red Sea. Ship-tracking data indicated that several tankers changed course to avoid the Bab el-Mandeb strait, creating concerns over global supply stability alongside existing disruptions in the Strait of Hormuz.
The surge in oil prices has led to a rise in short-term U.S. Treasury yields, with market analysts projecting a potential Federal Reserve interest rate hike in September. Meanwhile, the European Central Bank is expected to maintain current interest rates during its Thursday meeting, though officials may signal future increases if energy-driven inflation persists.
In the technology sector, Alphabet reported record quarterly growth for its cloud computing division but increased its annual capital spending forecast to a range of $195 billion to $205 billion. While this spending outlook boosted shares for Asian chipmakers like Samsung and SK Hynix, European market futures remained flat as investors evaluated the long-term returns on high artificial intelligence infrastructure investments.