Oil spiking 4.6% on Middle East supply fears dragged US indices lower while Indian benchmarks barely budged. The real story is how quickly higher crude and rising bond yields feed into each other.

Why the move happened

US-Iran strikes raised worries about oil supply, sending Brent to $94.65. That immediately stoked inflation concerns, so the US 10Y yield climbed toward 4.79% and Japan’s 10Y hit 3% (highest since 1996). Higher yields make future earnings less attractive, especially for growth stocks, which is why Nasdaq fell ~1% and the S&P 500 dropped ~0.7%.

Who gets squeezed first

US tech felt the double hit from expensive oil and dearer borrowing costs; broader indices followed. Indian markets stayed almost flat (Nifty -0.10% at 24,055.80) because local factors and a weaker rupee can offset some of the imported inflation. The only bright spot in the item was Apple, which edged higher after its new CEO news while the rest of tech sold off.

The one thing that flips it

Any sign that the strikes are contained or that supply routes stay open would quickly ease the oil risk premium and let yields stop climbing. Until then, the pressure stays on rate-sensitive names and import-heavy sectors.