Global shares fell for a third straight session and were poised for a third consecutive weekly decline on Friday while bond yields rose on worries the Iran war would keep upward pressure on oil prices and rekindle inflation.
Iran attacked an oil refinery in Kuwait on Friday and Israel killed a spokesman of Iran’s Revolutionary Guards, while three U.S. officials told Reuters that thousands of additional U.S. troops will be deployed to the Middle East.
An Axios report on Friday said that the Trump administration is considering plans to occupy or blockade Iran’s Kharg Island to pressure Iran to reopen the Strait of Hormuz.
On Wall Street, U.S. stocks were lower in the initial stages of trading, with the S&P 500 energy index the best performer of the 11 major S&P 500 sectors.
The Dow Jones Industrial Average fell 270.24 points, or 0.59%, to 45,751.19, the S&P 500 stumbled 60.15 points, or 0.91%, to 6,546.48 and the Nasdaq Composite tumbled 273.59 points, or 1.24%, to 21,817.10. Global bond yields have also moved higher, after policy announcements from multiple central banks this week indicated that interest rates were likely to either be on hold, or could potentially move higher should the war keep pressure on prices.