Global markets skidded as surging crude prices stoked inflation ‌worries, which could force central banks to reassess interest-rate moves.

Wall Street futures were in the red as the escalating Middle East conflict dampened risk appetite.

TSX futures followed sentiment lower.

In Canada, investors are getting results from Empire Co. Ltd., Premium Brand Holdings Corp., Wheaton Precious Metals Corp. and Ballard Power Systems Inc.

On Wall Street, markets are watching earnings from Adobe Systems Inc.

“War headlines and energy prices will determine how risk appetite evolves in the coming days,” Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note.

“It is nearly impossible to give precise price forecasts. Instead, taking oil and energy prices as given, the longer they remain high, the shorter market rebounds are likely to be and the greater the risk of a notable market correction.”

Overseas, the pan-European STOXX 600 was down 0.34 per cent in morning trading. Britain’s FTSE 100 declined 0.41 per cent, Germany’s DAX gave back 0.24 per cent and France’s CAC 40 retreated 0.47 per cent.

In Asia, Japan’s Nikkei closed 1.04 per cent lower, while Hong Kong’s Hang Seng slid 0.7 per cent.

Oil prices rose as Iran stepped ​up attacks on oil and transport facilities ‌across the Middle East, raising fears of a prolonged conflict and oil-flow disruptions through the Strait of Hormuz.

Brent futures were up 4.65 per cent to US$96.26 a barrel, having hit US$100 ⁠a barrel ​in earlier in the session. West Texas Intermediate (WTI) crude climbed 4.84 per cent to US$91.47.

There are no signs of a de-escalation in the Persian Gulf and as a result, there is no end in sight to the disruptions to oil ‌flows through Hormuz, ‌ING analysts said.

“The only way to see oil prices trade lower on ​a sustained basis is by getting oil flowing through ⁠the Strait of Hormuz,” ING said. “Failing to do so means that the ⁠market highs are still ahead of us.”

In other commodities, spot gold was up 0.15 per cent at US$5,183 an ounce. U.S. gold futures for April delivery advanced 0.24 per cent to US$5,191.30.

The Canadian dollar was little changed against its U.S. counterpart.

The day range on the loonie was 73.49 US cents to 73.66 US cents in early trading. The Canadian dollar was up about 0.14 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, gained 0.07 per cent to 99.31.

The euro fell 0.13 per cent to US$1.1553. The British pound dropped 0.19 per cent to US$1.3386.

In bonds, the yield on the U.S. 10-year note was flat at 4.232 per cent.

(8:30 a.m. ET) Canada’s merchandise trade balance for January.

(8:30 a.m. ET) Canadian wholesale trade for January.

(8:30 a.m. ET) Canadian building permits for January.

(8:30 a.m. ET) U.S. initial jobless claims for week of March 7. Estimate is 215,000, up 2,000 from the previous week.

(8:30 a.m. ET) U.S. goods and services trade balance for January.

(8:30 a.m. ET) U.S. housing starts for January. Consensus is a 4.6-per-cent decline on an annualized rate basis.

(8:30 a.m. ET) U.S. building permits for January. Consensus is an annualized rate decline of 4.3 er cent.

(8:30 a.m. ET) U.S. quarterly services survey for Q4.

With Reuters and The Canadian Press