Oil prices surge 5% after US strikes on Iran

Global markets experienced heightened volatility as Brent crude surged to a daily high of $79.26, driven by geopolitical tensions and inflationary pressures, while stock markets declined and government bond yields climbed amid fears of aggressive interest rate hikes. The U.S. and Iran exchanged strikes near the Strait of Hormuz, reigniting concerns over regional instability and potential disruptions to oil supplies. These developments underscored investors’ anxiety over rising energy costs and their potential to exacerbate inflation, prompting central banks to adopt a more hawkish stance.

Amid this backdrop, consumer demand for summer travel showed resilience, with Jet2 Holidays reporting a 7.1% year-on-year increase in summer bookings. The travel operator attributed the rebound to pent-up demand, noting that many customers had postponed purchases during the Middle East conflict but are now eager to book trips. Destinations such as Turkey, Cyprus, Greece’s eastern islands, Bulgaria, and parts of North Africa saw the strongest recovery, reflecting preferences for destinations with amenities like air-conditioned accommodations. Jet2 highlighted a 1.2 percentage point rise in average load factors, signaling robust consumer confidence despite lingering economic uncertainties. The recovery in travel demand contrasts with broader market jitters, illustrating the complex interplay between geopolitical risks and consumer behavior.