Oil prices leapt past $125 a barrel, hitting a peak unseen since the Middle East flare‑up. Brent crude spiked 7 % to $126.41 before settling at $123.50. The jump follows a 6.1 % rise on Wednesday, driven by Donald Trump’s threat to keep the Strait of Hormuz blocked until Tehran ends its nuclear programme.

Asian markets felt the shock. Japan’s Topix fell 1.5 % as 30‑year bond yields ticked up to 3.7 %. The yen hovered near JPY 160.40, a level where authorities have historically intervened. Investors sold Japanese stocks and bonds, while Asian governments face higher borrowing costs amid the energy‑price squeeze.

In the United States, S&P 500 futures edged up 0.1 %, while Nasdaq futures rose 0.4 %. Alphabet, the Google parent, leapt 7 % in after‑hours trading, buoyed by strong earnings. Tech and AI stocks continue to run ahead, keeping equity markets largely detached from the oil rally.

Bond markets across Asia tightened further. India's 10‑year yield climbed to 6.99 %, and the rupee slid to a record low versus the dollar. U.S. Treasuries held steady at 5 % for 30‑year notes, while the dollar traded flat against a basket of partners. Gold edged 0.5 % to $4,570 an ounce.