Oil Hits $100, Stocks Slip as Inflation Fears Return

Global stock markets fell on Tuesday as Brent crude oil prices neared $100 a barrel, reigniting worries that central banks will be forced to keep raising interest rates to control inflation. The drop in equities came as investors weighed the risk that higher energy costs will push consumer prices up further, making it harder for policymakers to ease monetary policy anytime soon. In currency markets, the Japanese yen gave up an earlier gain of as much as 1%, weakening against the dollar as traders adjusted their positions. The moves reflect a broader market mood of caution, with oil’s rally acting as a fresh reminder that inflation pressures have not fully faded. Analysts say that if crude stays above $100, it could force central banks, including the U.S. Federal Reserve, to maintain a tighter stance for longer than previously expected. For now, traders are watching oil prices closely, as any further surge could deepen the sell-off in stocks and keep global markets on edge.