Oil surge leads to ASX and bond sell-off, higher risk of RBA rate hike | ABC NEWS

By ABC News (Australia)

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Around $90 billion has been wiped off the value of Australian shares this week. The ASX 200 index has dropped 6 per cent since hitting a record high in early August. Iran-backed Houthis have seized control of a key port in Yemen, posing a further threat to Red Sea traffic. The Strait of Hormuz remains effectively closed as fighting between the US and Iran intensifies. The increased the risk of oil shortages and inflation staying higher for longer led to government bonds being sold off across Australia, the US, UK, Japan, Germany and other countries — pushing up the borrowing costs for those nations. Markets are now betting the Reserve Bank of Australia (RBA) could lift interest rates as much as six times in the current rate-hiking cycle. Presented by David Chau. *EDITOR'S NOTE (11/09/26):* This video was re-uploaded to correct numerical errors in the graphs titled 'higher borrowing costs for Australia' and 'global bond sell-off'. Subscribe: http://ab.co/1svxLVE Read more here: ht

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