Global market wrap: Oil jumps amid attacks on Qatar and Saudi energy sites, Asian stocks dive

Stocks fell and oil prices surged on Thursday as a major escalation in the US and Israel’s war with Iran unsettled investors. Asia-Pacific markets also declined, tracking losses on Wall Street, where the Dow Jones Industrial Average closed at a new low for the year.

We are back with quick updates about global stock markets and major developments across some of the top companies worldwide.

Asian stocks fell on Thursday, with Japan’s benchmark leading losses after the Bank of Japan kept interest rates unchanged and warned of rising inflation uncertainty amid surging oil prices and escalating tensions in the Middle East. Regional markets also weakened following overnight losses on Wall Street, where a hawkish message from the Federal Reserve weighed on sentiment.

Japan’s Nikkei 225 dropped 3.3% to 53,372, while South Korea’s Kospi declined 2.7% to 5,763. Hong Kong’s Hang Seng index was down 2% to 25,497, while Singapore’s Straits Times Index slipped 0.7% to 4,963 as of 12:46 PM.

Stocks in Australia also ended Thursday’s session in negative territory with the S&P/ASX 200 losing 1.6% to 8,497.

Meanwhile, US stock futures edged lower on Wednesday night after a sharp selloff on Wall Street pushed the Dow Jones Industrial Average to a new low for 2026. The Dow dropped 1.6%, to close at 46,225, slipping below its 200-day moving average. The S&P 500 declined 1.3% to 6,624, while the Nasdaq Composite fell 1.4% to end at 22,152.

Oil prices spiked higher on Thursday as the Middle East remains on the boil with strikes on energy infrastructure in the region fanning fears of a supply crunch. Qatar said that Iranian missile strikes had damaged an important liquefied natural gas export facility. This came after Israel bombed Iran’s South Pars gas field, marking a sharp escalation in the war and driving energy prices higher. As of 06:10 am, GMT, Brent crude for May were 4.6% higher at $112.41, while US West Texas Intermediate for April climbed more than 1.3% to $97.59.

Meanwhile, Donald Trump warned that if Iran continues to target Qatar’s energy infrastructure, the US would “massively blow up the entirety of the South Pars Gas Field.”

Here’s a look at some of the important developments across the global markets:

Fed holds key interest rate at 3.5%-3.75% as inflation and geopolitical risks loom

The US Federal Reserve voted to keep its key interest rate unchanged, citing higher-than-expected inflation, mixed labour market signals and the US-Israel war with Iran. In an 11-1 decision, the Federal Open Market Committee maintained the benchmark federal funds rate at 3.5% to 3.75%, which affects both bank funding costs and consumer and business borrowing. Fed Chair Jerome Powell said that rising energy prices could push inflation higher in the near term, but it is too early to assess the full impact on the economy.

Aligning with the US Fed decision, the Central Bank of the UAE also maintained its base rate for the Overnight Deposit Facility at 3.65%. Meanwhile, the Bank of Japan kept its rates steady at 0.75% as expected, with eight of nine members voting to hold, but highlighted that inflation risks are now skewed to the upside due to the Iran conflict. Tokyo faces pressure from rising energy prices, as Japan imports about 95% of its energy from the Middle East.

Elon Musk says Tesla, SpaceX AI will continue large-scale Nvidia chip orders

Elon Musk said that Tesla and SpaceX AI will continue to order Nvidia chips at scale. Tesla is developing its fifth-generation AI chip to power its autonomous driving systems, including the Full Self-Driving (FSD) software. Musk said that the AI5 chip can be used for data centre training but is mainly optimised for AI edge computing in the humanoid robot Optimus and Robotaxi. He also said a wide release of the FSD (Supervised) software update is expected in a few weeks.

HSBC mulls 20,000 job cuts as part of AI-driven restructure

HSBC Holdings Plc is considering significant job cuts over the next few years as CEO Georges Elhedery plans to use AI to reduce the bank’s middle and back-office workforce. Roles in global service centers that do not face clients are expected to be most affected, with as many as 20,000 positions, or about 10% of its total workforce, potentially at risk. The cuts would form part of a medium-term plan over three to five years, which could include reductions through business sales or exits, though no final decision has been made.

Nasdaq gets SEC nod to settle stock trades in tokenised form

The US Securities and Exchange Commission has approved a rule change allowing Nasdaq to support trading in tokenised securities, highlighting the growing overlap between traditional finance and crypto. Under a pilot programme, eligible participants can choose to settle trades in tokenised form. These tokenised shares will use the same order book and execution priority as traditional equities and must offer shareholders the same rights and privileges as regular stock.

Australia’s job growth rises in February, but unemployment hits 3-month high

Australia added 48,900 jobs in February, surpassing expectations, but the unemployment rate rose to a three-month high of 4.3% as more people entered the labour force, according to the Australian Bureau of Statistics. The employment gains were mainly in part-time positions, which increased by 79,400, especially among those aged 65 and older. Full-time jobs, meanwhile, fell by 30,500. The participation rate rose to 66.9%, and total hours worked declined by 0.2%, creating a mixed picture for the country’s labour market and interest rate outlook.