Bonds and equities climb as oil retreats; yen surges after Japanese intervention

Oil prices eased from a four‑year peak on Thursday, with Brent crude dropping $4.02 to close at $114.01 per barrel, a 3.4% decline, while U.S. crude settled at $105.07 after falling $1.81. The market volatility stems from the ongoing Middle East conflict that began after joint U.S.-Israeli strikes on Iran in late February, limiting shipments through the Strait of Hormuz, which carries one‑fifth of global oil and gas. Iran has warned of "long and painful strikes" if the United States resumes attacks, and no agreement to reopen the strait has been reached, keeping oil prices elevated.

Equity indexes posted strong gains, with the Dow Jones Industrial Average up 853.89 points (1.75%) at 49,715.70, the S&P 500 rising 78.07 points (1.09%) to 7,214.02, and the Nasdaq Composite climbing 238.22 points (0.97%) to 24,911.46. The MSCI World index increased 0.99% to 1,078.18, and the STOXX 600 advanced 1.38%. Analysts linked the rally to falling oil prices, which lowered yields and supported earnings reports, including an upcoming Apple results release after market close.

The eurozone and UK central banks held rates steady, while the Federal Reserve signaled a more hawkish stance, dropping the easing bias in its policy statement – the sharpest split among board members since 1992. In Japan, authorities intervened in the currency market for the first time in nearly two years, pushing the yen up sharply; the dollar fell as much as 3% to 155.5 yen, the biggest one‑day drop since December 2024, and later settled around 156.5 yen. European bond yields responded, with two‑year German yields snapping an eight‑day rise and two‑year UK gilt yields slipping below 4.5%.