Rising oil prices, driven by fears of escalating conflict in the Middle East, are casting a deepening shadow over global markets.
By 10:30 am AEST (12:30 am GMT), Brent and WTI crude futures were up by 9 cents apiece, following Brent crude's largest daily increase in a year yesterday, with week-to-date gains exceeding 8%.
If prices hold steady on Friday, it would mark the biggest weekly rise since January 2023.
While oil has only returned to levels seen a month ago, the surge is beginning to erode investor confidence, particularly as inflation concerns resurface.
U.S. Treasury yields are also climbing, with longer-term rates reflecting growing inflationary fears.
This shift has further pressured risk appetite, especially in Asia, where markets are already facing headwinds from higher oil prices and a stronger U.S. dollar.
The U.S. dollar index hit a six-week high on Thursday, bolstered by safe-haven demand amid geopolitical uncertainty, further weighing on Asian markets.
Investors are now bracing for the U.S. non-farm payrolls report, which could shape expectations for a potential Federal Reserve interest rate cut in November.
