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Oil Prices Surge to $78 as Gulf Tensions Trigger Market Sell-off

Brent crude climbed over 5% on Wednesday, reaching $78 a barrel after President Donald Trump signaled the end of a key memorandum with Iran. The announcement sent shockwaves through global financial systems, as investors scrambled to price in the risk of supply blockades in the volatile Strait of Hormuz.

Oil Prices Surge to $78 as Gulf Tensions Trigger Market Sell-off

The sudden spike in energy costs has intensified fears of persistent inflation, further exacerbated by already depleted global oil inventories. Markets reacted sharply to the geopolitical shift, with global stock indices slumping and bond yields climbing as capital moved toward safe-haven assets.

Beyond energy concerns, market stability faces additional pressure from uncertainty surrounding AI sector valuations. Traders remain on edge, fearing that any further escalation in the Gulf could severely disrupt critical shipping lanes, potentially triggering a broader economic correction.

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