London — March 6 — Global financial markets declined on Friday as rising oil prices linked to the escalating conflict involving Iran and the United States, alongside weaker-than-expected U.S. employment data, heightened concerns about global economic growth.
Futures tied to the S&P 500 dropped 0.84%, while Nasdaq Composite futures declined 1.02%. In Europe, the STOXX Europe 600 index fell approximately 1%, reflecting broad investor caution across major markets.
The MSCI All Country World Index was also on track to record a 2.9% weekly decline, marking its largest drop since March 2025.
Investor sentiment was further shaken by surging energy prices. Brent Crude Oil climbed to $89.50 per barrel, its highest level in nearly two years, while West Texas Intermediate rose more than 5% to $86.70 per barrel, reaching levels last seen in April 2024.
Concerns intensified after Qatar’s energy minister warned that prolonged regional conflict could force Gulf energy producers to halt exports, potentially driving oil prices as high as $150 per barrel and triggering significant global economic disruption.
Economic data from the United States added to the uncertainty. February figures showed that non-farm payrolls declined by 92,000 jobs, compared with economists’ expectations for a 59,000 increase. The unemployment rate also edged higher to 4.4%, up from 4.3% in January, signaling potential softness in the labor market.
Following the data release, U.S. Treasury yields declined slightly, with the 10-year yield falling to 4.125%, while the U.S. dollar weakened.
Market expectations for monetary policy also shifted. Traders now anticipate roughly 45 basis points in interest rate cuts from the Federal Reserve this year, compared with 35 basis points before the jobs data but below the 55 basis points expected a week earlier.
Meanwhile, rising energy costs have increased speculation that the European Central Bank could consider raising interest rates later this year, particularly as energy-importing economies in Europe face inflationary pressure from higher oil prices.
Analysts say the combination of geopolitical tensions, rising energy costs, and weakening economic indicators has introduced significant volatility across global financial markets.
