Oil prices remained above $100 a barrel Thursday as global markets braced for prolonged economic turmoil from the escalating Middle East conflict. U.S. stocks faced steep declines, with investors anticipating sustained inflationary pressures from disrupted energy supplies.

Sanctions easing on Russian crude failed to materialize, dashing hopes for immediate supply relief. Crude benchmarks like Brent and WTI maintained elevated levels, reflecting geopolitical risks. Analysts warned that prolonged tensions could trigger multi-year inflation cycles, eroding consumer purchasing power.

Treasury yields surged to multi-year highs as safe-haven demand for bonds surged, while the U.S. dollar strengthened against emerging market currencies. Central banks signaled readiness to combat inflation, though policymakers face a tough balancing act between growth and price stability.

Market volatility intensified across equities, bonds, and commodities, with energy sectors experiencing the sharpest swings. The conflict’s ripple effects on shipping routes and regional trade networks remain a critical wildcard for global economic stability.