Brent opened up around $108 a barrel on the shutdown of a Saudi pipeline, according to Commerzbank Research in a note. Treasuries stay range-bound.
Saudi Arabia suspended operations on its east-west oil pipeline after a drone attack originating from Iraq, said Commerzbank. The Iran-backed Houthis also claimed responsibility for an assault on a Saudi military base.
Gulf states delayed planned talks with Iran over the Strait of Hormuz, added the bank.
US equity futures are weaker, led by technology, on the increasing focus on whether frontier Artificial Intelligence is advancing so rapidly that safety measures, oversight and understanding of these systems are struggling to keep pace.
The dollar strengthened, with EUR/USD slipping below $1.1570, according to the bank.
European Central Bank President Christine Lagarde warned that the current price shock could prove more persistent than expected. She said higher long-term rates reflect concerns over public finances and funding needs, notably for AI investment, but stressed that the backdrop differs significantly from 2008 and 2022.
Elsewhere in Europe, the German government dismissed reports that it was considering a minority government or seeking to remove Prime Minister Friedrich Merz, said Commerzbank.
French Prime Minister Sebastien Lescure said the government aims to deliver 30 billion euros in savings in 2027, describing the budget as "difficult and ambitious." Far-right leader Marine Le Pen indicated that a compromise over the 2027 budget remained possible. The French central bank denied reports that any of its debt holdings had been sold in the market, calling social media claims false.
In Asia, China warned it could call off a planned summit between President Xi Jinping and President Donald Trump if the US approves new arms sales to Taiwan.