Oil prices climb amid Middle East tensions

Brent crude oil prices rose 0.8% to $84.23 per barrel on August 10, 2026, as geopolitical tensions in the Middle East intensified. The surge followed Israel’s rejection of a Gaza deal proposed by U.S. President Donald Trump and reports of a potential agreement between Iran and Oman regarding the Strait of Hormuz. Iran suggested it may block vessels linked to “hostile countries” from the strait, further stoking fears over disruptions to global shipping routes. Yemen’s Iranian-backed Houthi rebels also attacked a government-held port on the Red Sea coast, deepening concerns about regional instability. U.S. benchmark crude climbed 0.7% to $78.72 per barrel. Analysts noted that while negotiators hinted at a deal to secure safe shipping lanes, Iran appeared to be leveraging the situation to extract concessions from the U.S. “Negotiators said that a deal to establish a safe shipping route was close, but Iran may now be exploring just how much it can extract from the U.S. in return,” said Bas van Geffen, senior macro strategist for Rabobank. Global markets reacted unevenly to the oil price movement. In Europe, Germany’s DAX gained 0.3% to 26,411.01, while France’s CAC 40 slipped 0.1% to 8,703.73. The UK’s FTSE 100 dropped 0.3% to 10,869.35. Japan’s Nikkei 225 led gains in Asia, surging 2.1% to 66,970.22, driven by tech stocks like Tokyo Electron (+4.1%) and Advantest (+6.4%). South Korea’s Kospi rose 0.7% to 6,299.66, though chipmakers Samsung Electronics (-0.4%) and SK Hynix (-0.1%) lagged. Hong Kong’s Hang Seng added 1.1% to 25,937.49, while the Shanghai Composite gained 0.7% to 3,966.59. Australia’s S&P/ASX 200 fell 0.3% to 9,232.60, and Taiwan’s Taiex jumped 1.6%. India’s Sensex was nearly flat. The U.S. dollar strengthened to 158.72 Japanese yen from 157.71 yen, while the euro weakened to $1.15617 from $1.1568. Investors are bracing for key U.S. inflation data this week, with the consumer price index (CPI) for July expected to show a 3.4% annual rise, slightly down from 3.5% in June. Persistent inflation above 3% has kept pressure on the Federal Reserve’s rate-hike decisions. Last Friday’s jobs report, which showed an unexpected 23,000-job cut in July, fueled hopes the Fed might delay further rate hikes, lifting major U.S. stock indices to fresh records. The S&P 500 rose 0.6% to 7,757.64, the Dow Jones Industrial Average gained 0.3% to 54,036.93, and the Nasdaq composite advanced 1.3% to 26,690.62. However, the jobs data also revised downward payroll figures for May and June by a combined 103,000 jobs, raising concerns about consumer spending amid high inflation. Slowing employment growth complicates the Fed’s balancing act between controlling inflation and supporting job growth. Higher borrowing costs could curb inflation but may also hinder business expansion. Tech stocks continued to drive market gains, with Nvidia up 2.3% and Broadcom rising 1.7%.