U.S. stocks look set to end a strong week on a down note as oil prices surge. Brent crude jumped more than 3% to around $109 a barrel after conflicting statements from President Trump about the Strait of Hormuz. The tech-focused Nasdaq-100 futures fell more than 1%, with chip stocks retreating after their recent gains.

The 10-year Treasury yield topped 4.5%, approaching its highest level in nearly a year as higher oil prices reignite inflation fears. Markets struggled overseas, with South Korea's Kospi index plunging more than 6% and Japan's Nikkei 225 slumping after producer prices jumped in April. The moves reflect global anxiety over energy security and price stability.

Investors monitor U.K. markets as pressure mounts against Prime Minister Keir Starmer. Gilt yields jumped while the pound weakened against the dollar. The market turmoil stems from geopolitical tensions in the Middle East and their direct impact on energy markets, creating ripple effects across global financial assets.