{"id":61578,"date":"2026-05-04T20:38:26","date_gmt":"2026-05-05T00:38:26","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/"},"modified":"2026-05-04T20:38:26","modified_gmt":"2026-05-05T00:38:26","slug":"global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/","title":{"rendered":"Global Markets Retreat as US-Iran Clashes Drive Oil Past $114 and Yields Over 5%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Geopolitical_Tensions_Ignite_Energy_Markets\" >Geopolitical Tensions Ignite Energy Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Global_Markets_and_Treasury_Yields_Under_Pressure\" >Global Markets and Treasury Yields Under Pressure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Tech_Giants_Double_Down_on_AI_Infrastructure\" >Tech Giants Double Down on AI Infrastructure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Financial_Sector_Earnings_Misses_and_Leadership_Shifts\" >Financial Sector: Earnings Misses and Leadership Shifts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-retreat-as-us-iran-clashes-drive-oil-past-114-and-yields-over-5\/61578\/#Economic_Data_and_Manufacturing\" >Economic Data and Manufacturing<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Brent crude surged above $114 per barrel<\/strong>, hitting a four-year high after renewed clashes between the <strong>United States and Iran<\/strong> shattered a fragile ceasefire in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>Long-term US Treasury yields broke past 5%<\/strong> as investors bet on further interest rate hikes to combat the inflationary pressure of rising energy costs.<\/li>\n<li><strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> is securing a <strong>$13 billion debt-led financing deal<\/strong> to fund a massive AI data center in Texas, marking one of the largest infrastructure investments in the company&#39;s history.<\/li>\n<li><strong>Berkshire Hathaway (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>)<\/strong> has named <strong>Charlie Shamieh<\/strong>, Chairman of Gen Re, as the official successor to insurance chief <strong>Ajit Jain<\/strong>.<\/li>\n<li><strong>Westpac (<a href=\"\/stock\/WBC\">WBC<\/a>)<\/strong> reported H1 2026 net income of <strong>A$3.18 billion<\/strong>, missing analyst estimates of A$3.50 billion amid rising geopolitical challenges and lower-than-expected capital ratios.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_Ignite_Energy_Markets\"><\/span>Geopolitical Tensions Ignite Energy Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The fragile four-week ceasefire in the Middle East collapsed as <strong>United States and Iranian forces<\/strong> exchanged fire in the <strong>Persian Gulf<\/strong>. Reports of drone and missile attacks targeting the <strong>United Arab Emirates (UAE)<\/strong> and disruptions at the <strong>Fujairah port<\/strong> have effectively closed the <strong>Strait of Hormuz<\/strong>, removing millions of barrels of oil from the global supply.<\/p>\n<p><strong>Brent crude<\/strong> jumped over 5% to settle near <strong>$114.44<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> climbed to <strong>$106.42<\/strong>. Analysts warn that a prolonged conflict could push prices toward <strong>$150 per barrel<\/strong>, further stoking global inflation fears and complicating the path for central banks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Global_Markets_and_Treasury_Yields_Under_Pressure\"><\/span>Global Markets and Treasury Yields Under Pressure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Asian and European markets pulled back from recent record highs as the escalation drove a flight to safety and a sharp repricing of interest rate expectations. <strong>EuroStoxx 50 futures<\/strong> slipped 0.2%, while the <strong>FTSE<\/strong> declined 0.7% in early trading. In Australia, the <strong>S&amp;P\/ASX 200<\/strong> fell 0.5% to <strong>8,657.40 points<\/strong>.<\/p>\n<p>The surge in energy prices pushed <strong>long-term US Treasury yields past 5%<\/strong>, a level not seen in years, as traders increased bets on further <strong>Federal Reserve<\/strong> rate hikes. The shift in yields is threatening to stall the tech-led rally that has dominated global equities throughout the early part of 2026.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Giants_Double_Down_on_AI_Infrastructure\"><\/span>Tech Giants Double Down on AI Infrastructure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite market volatility, <strong>Meta Platforms (<a href=\"\/stock\/META\">META<\/a>)<\/strong> is moving forward with an aggressive infrastructure push, lining up <strong>$13 billion in debt financing<\/strong> for a new AI data center in <strong>El Paso, Texas<\/strong>. The deal, structured by <strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>)<\/strong> and <strong>JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong>, underscores the massive capital requirements of the ongoing AI race.<\/p>\n<p>Similarly, <strong>ServiceNow (<a href=\"\/stock\/NOW\">NOW<\/a>)<\/strong> issued a bullish long-term outlook, targeting <strong>$30 billion in subscription sales by 2030<\/strong>. The company expects roughly <strong>30% of its revenue<\/strong> to be generated by AI-specific products, signaling continued momentum in enterprise software spending despite broader economic uncertainty.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Sector_Earnings_Misses_and_Leadership_Shifts\"><\/span>Financial Sector: Earnings Misses and Leadership Shifts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Berkshire Hathaway (<a href=\"\/stock\/BRK.A\">BRK.A<\/a>)<\/strong> provided clarity on its long-term leadership by naming <strong>Charlie Shamieh<\/strong> as the successor to <strong>Ajit Jain<\/strong>. Shamieh, currently the Chairman of <strong>Gen Re<\/strong>, will eventually oversee Berkshire&#39;s sprawling insurance operations, a core pillar of the conglomerate&#39;s &quot;float&quot; and investment strategy.<\/p>\n<p>In the banking sector, <strong>Westpac (<a href=\"\/stock\/WBC\">WBC<\/a>)<\/strong> struggled in the first half of 2026, posting a net income of <strong>A$3.18 billion<\/strong>, well below the <strong>A$3.50 billion<\/strong> forecast. The bank\u2019s <strong>Common Equity Tier 1 (CET1) ratio<\/strong> also fell to <strong>12.4%<\/strong>, missing the <strong>12.6%<\/strong> target. Meanwhile, <strong>ANZ Group Holdings (<a href=\"\/stock\/ANZ\">ANZ<\/a>)<\/strong> faces a potential <strong>NZ$125 million liability<\/strong> following a New Zealand High Court ruling that the bank breached consumer credit laws.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Data_and_Manufacturing\"><\/span>Economic Data and Manufacturing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Australia&#39;s economic indicators showed slight resilience as the <strong>S&amp;P Global Composite PMI<\/strong> rose to <strong>50.4<\/strong> in April, up from <strong>50.1<\/strong>. The <strong>Services PMI<\/strong> edged higher to <strong>50.7<\/strong>, indicating marginal growth in the services sector despite the mounting geopolitical and inflationary headwinds facing the Asia-Pacific region.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent crude surged above $114 per barrel, hitting a four-year high after renewed clashes between the United States [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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