Oil Piles Pressure On Stocks & Bonds | WION World Business Watch

Added: 2026-05-22

[00:00:01]Crude prices rose back above $110 per barrel on Monday, driven by fresh drone attacks in the Gulf. Rising oil prices pressured stocks and bonds.

[00:00:10]Analysts at Capital Economics are sounding the alarms. They say global oil inventories are draining at a record pace, and that at this rate, the emergency reserves will also soon run out.

[00:00:21]The biggest risk to global energy still the Strait of Hormuz. Capital Economics bet that if the strait stays closed through June, Brent crude could reach to $140 a barrel soon. And if oil climbs to $140 to $150 and stays there into 2027, inflation could hit nearly 10% in the UK and Europe.

[00:00:42]That will likely push the world towards a global recession.

[00:00:46]The fallout is hitting financial markets hard. Asian stocks fell on Monday.

[00:00:50]Japan's Nikkei slipped. South Korean markets have dropped over 2% from recent highs, and broader Asia-Pacific indices remains in the red.

[00:00:58]Last week, China's markets hit their highest in over 4 years, but will have to weather data on April retail sales and industrial output later in the session.

[00:01:07]Wall Street futures also point to a red open on Monday. In yet another sign, investors fear central banks will be forced to raise rates again to fight inflation. US bond yields surged sharply last week.

[00:01:19]The Federal Reserve is now seen as having a 50/50 chance of hiking rates this year.

[00:01:24]The dollar dollar gained strength while the euro and British pound both took a beating last week.

[00:01:30]Amidst the gloom, one name is keeping investors on edge, Nvidia. The world's most valuable company reports earnings on Wednesday.

[00:01:39]Its shares have already surged 36% since the month of March. The results will be a key test of whether the artificial intelligence boom has real staying power.

[00:01:49]A Gulf on fire, oil at over $110 per barrel, and a market waiting on one chip company. It is without doubt a week to watch.