Global equity markets faced significant declines as oil prices surged past the $US100 per barrel mark, sparking fears of inflation and triggering a sell-off on Wall Street.The rise in crude oil prices, driven by renewed tensions between the US and Iran, pressured bond yields and sent the S&P 500 down 1.3% in New York trading.Tech giants like Tesla and Alphabet saw sharp drops, with Tesla falling 14% and Alphabet losing over 6% following disappointing earnings reports.

The Magnificent Seven tech stocks collectively declined, reflecting investor concerns about the financial viability of massive AI infrastructure investments.European markets also suffered their steepest one-day drop in over two weeks, with the pan-European STOXX 600 index falling 1.3%.In Australia, ASX 200 futures dropped 0.6%, while bond yields rose, with German bond yields hitting a 15-year high.The surge in oil prices has intensified debates about energy policy and its impact on global economic growth.