Oil prices climbed after new attacks on tanker vessels in key shipping lanes. The strikes raised concerns about supply disruptions in global energy markets. Brent crude traded above $104 a barrel following the incidents.
The attacks targeted commercial ships in a major transit corridor. Shipping companies have begun rerouting vessels to avoid risk. Insurance costs for tanker operators rose sharply after the news.
Energy stocks gained as crude prices moved higher. Major oil producers saw shares rise in early trading. The sector outperformed the broader market through the morning session.
Government bond yields pushed higher alongside oil. Investors worried that energy costs could feed into inflation. Higher yields reflected expectations of tighter monetary policy.
Equity markets showed mixed results across major indexes. The Dow Jones Industrial Average held slight gains. The S&P 500 and Nasdaq fluctuated between small gains and losses.
Technology shares faced pressure from rising yields. Growth stocks are sensitive to higher borrowing costs. Defensive sectors like utilities and consumer staples lagged.
Traders are monitoring whether the attacks continue in coming days. A prolonged disruption could keep oil prices elevated. Further escalation may weigh on global economic growth.
