Oil Surge, Dollar Rally Put European Markets Under Pressure

European stocks opened lower on Friday, extending the week's risk-off tone. Oil prices extended their rally. The dollar strengthened alongside bond yields.

The escalation in the Middle East kept safe-haven demand elevated. Crude oil futures climbed further. The dollar index rose, putting pressure on the euro and sterling. The yen remained weak after the Bank of Japan's decision earlier this week, though intervention risks kept the pair volatile.

Bond yields moved higher. The 10-year Treasury yield rose. Traders reduced expectations for near-term rate cuts. European government bond yields also advanced.

Traders shifted focus to the forex market, where the dollar's strength was broad-based. The euro and pound both slipped against the greenback. More forex market analysis is available on our forex market analysis page.