Stocks Drop, Crude Jumps as Energy Assets Targeted: Markets Wrap

Global equity markets fell sharply on Thursday, with US futures and Asian stocks declining amid heightened geopolitical tensions after an attack on two oil tankers in Iraqi waters disrupted energy supplies. The incident triggered a surge in crude oil prices, underscoring vulnerabilities in Middle Eastern energy infrastructure and raising concerns over potential supply chain disruptions. Investors reacted with caution, extending a volatile trading week as energy assets became primary targets, amplifying market uncertainty and risk aversion. The attack highlights escalating regional instability, prompting fears of broader economic repercussions if energy flows face sustained threats or further disruptions. Analysts warn the situation could exacerbate inflationary pressures, particularly in energy-dependent sectors, as markets brace for potential retaliatory measures or additional strikes.