Oil prices pulled back on Friday after a recent surge, with Brent crude down 1.1% to around $105.47 a barrel and West Texas Intermediate down 1.8% to $92.91.
The decline could ease some pressure on consumer, travel and other fuel-sensitive shares, although it may weigh on heavyweight energy producers such as BP and Shell. Geopolitical risk nevertheless remains elevated following renewed attacks around Saudi Arabia and continuing uncertainty over energy flows through the Middle East.
Iran has separately proposed reopening the Strait of Hormuz within seven days if certain conditions are met, potentially offering a route towards easing disruption to global oil supplies.
Government bonds remain the principal source of caution. The US 10-year Treasury yield traded around 5.19% after reaching 5.23%, while the 30-year yield approached 5.5%, maintaining pressure on equity valuations and corporate borrowing costs.
Wall Street finished broadly unchanged after a volatile session. The S&P 500 slipped less than 0.1% to 7,704.13, the Nasdaq was virtually flat at 26,939.37 and the Dow Jones Industrial Average fell 0.3% to 51,349.98.
Asian markets were mixed, with Japan’s Nikkei gaining around 1%, while Hong Kong fell about 1% and Australia’s ASX 200 dropped around 0.5%. Mainland China, Taiwan and South Korea were closed for holidays.
Gold edged 0.1% higher to around $4,302.97 an ounce, silver added 0.1% to $64.07 and copper slipped 0.3% to around $6.76 per pound. Bitcoin traded near $84,160, up around 0.2%.
The wider market implication is that oil is no longer the only—or even the main—pressure point. Unless Treasury yields begin to retreat, lower crude prices may offer only limited support to equities, with investors likely to remain focused on whether higher global borrowing costs develop into a broader valuation reset.
