CNBC — 2026-05-17#

Lead Story#

Global markets are bracing for extended turmoil as the U.S.-Iran war drags on, prompting G7 finance ministers to convene in Paris over the economic fallout of the Strait of Hormuz closure. Geopolitical tensions escalated further this weekend with a drone strike at a UAE nuclear power plant, leading President Donald Trump to issue a stark warning to Tehran that the “clock is ticking”.

Markets & Economics#

The diplomatic deadlock in the Middle East has sent Brent crude up 74% year-to-date to $109.26 per barrel, rapidly shrinking global oil inventories ahead of peak summer demand. Sustained inflation fears have triggered a heavy selloff in global sovereign debt, pushing the U.S. 30-year Treasury yield up to 5.121%, its highest level since October 2023. Consequently, U.S. stock futures fell early Monday, stalling the momentum from last week’s record highs for the S&P 500 and Nasdaq as traders await crucial earnings from Nvidia and major retailers. In Asia, Japanese 10-year bond yields surged over 9 basis points to 2.793%, dragging down the Nikkei 225 amid fears of a severe oil supply crunch.