GLOBAL MARKETS: Oil jumps and bonds dip as US strikes Iran

SINGAPORE — Oil prices climbed and bond futures fell Wednesday after the United States launched strikes on Iran and reinstated trade sanctions following attacks on tankers in the Strait of Hormuz, while global stocks were mixed as momentum from the artificial intelligence-driven market rally continued to fade.

U.S. crude futures rose 2.7% to $72.40 a barrel, while 10-year U.S. Treasury futures slipped as investors priced in the possibility of higher inflation and interest rates.

"Obviously the market doesn't like these attacks, but it's not full-blown panic mode," Jason Wong, senior strategist at BNZ in Wellington, said.

Wong said the oil market has remained resilient despite major supply disruptions in recent months, although low global oil reserves have increased its vulnerability to further shocks.

Data released this week showed crude oil stockpiles in the U.S. Strategic Petroleum Reserve had fallen to their lowest level since 1983.

Asian markets also reflected the cautious mood, with Nikkei futures signaling losses for Japanese stocks. S&P 500 futures were down about 0.1%.

Wall Street indexes declined overnight after shares of Samsung Electronics fell sharply despite reporting strong earnings, reinforcing concerns that investors may be reluctant to extend the rally that has pushed South Korea's chipmaker-heavy stock market up 82% this year.

The U.S. strikes marked the latest escalation following last month's ceasefire. According to a U.S. official, the attacks targeted Iranian air defense systems, coastal surveillance facilities, and anti-ship and drone launch sites.

Washington also revoked a concession that had allowed Iran to sell oil on the global market. Iran's foreign ministry said the move violated the framework agreement that ended the conflict.

In currency markets, the U.S. dollar strengthened after easing from recent highs. The euro slipped to just above $1.14, while the Australian dollar fell to $0.6925.

Investors were also awaiting the Reserve Bank of New Zealand's interest rate decision later Wednesday. Markets were pricing in about an 85% chance of a rate hike, with most economists also expecting an increase. -Reporting by Tom Westbrook; Editing by Jamie Freed/Reuters