Wall Street looked to open lower Monday as the inflationary jolt from surging oil prices threatened to raise living costs and ‌interest rates around the globe, while investors desperate for liquidity fled to the U.S. dollar.

Crude oil futures in London and New York soared almost 30% to nearly $120 a barrel, one of ​the biggest one-day jumps on record in early trading, threatening to raise costs of products from gasoline to jet fuel. Brent crude and U.S. WTI were last up having moved as ​much as $10 ​during the day's trading session to $102.81 and $100.91 a barrel, respectively.

Investor jitters over soaring energy prices meant a wave of global stock and bond market selling which hung over the Wall Street open with S&P 500 futures and Nasdaq futures both down roughly 1%. Iran named Mojtaba Khamenei to ⁠succeed his father Ali Khamenei as Supreme Leader, signalling that hardliners remained firmly in charge a week into the war with the U.S. and Israel. That was unlikely to be welcomed by U.S. President Donald Trump, who had declared the son "unacceptable." With hostilities continuing in the Middle East and tankers unable to cross the Strait of Hormuz amid the threat of Iranian drone attacks, investors were bracing for a long stretch of higher energy costs.

Investors await Washington's response, said Helima Croft, head of global ​commodity strategy at RBC Capital ‌Markets. "With no clear definition ⁠of what winning looks like, ⁠it is hard to forecast whether this will be a multi-week or multi-month conflict."

GLOBAL MARKETS SINK

European shares tumbled to their lowest in more than two months on Monday, with ​the pan-European STOXX 600 down 1.4% in a third session of losses. The benchmark index shed 5.5% last week, its ‌worst weekly performance in nearly a year.

The news was sobering for major oil importers in Asian markets, ⁠the Nikkei closing down 5.2% after a 5.5% drop.

China, another big oil importer albeit with a huge stockpile of crude, saw its blue-chip index fall roughly 1%. China on Monday said inflation had already picked up in February before the current oil spike, with consumer prices rising 1.3% on the year, not necessarily a negative development, given the country has long struggled with disinflation.

In bond markets, the risk of rising inflation outweighed safe-haven considerations to shove yields higher globally. Yields on 10-year Treasury notes rose 4 basis points to 4.171%, up from a trough of 3.926% just a week ago.

CENTRAL BANKS FACE INFLATION CONUNDRUM

Interest rate futures slipped as investors feared the risk of higher inflation would make it harder for the Federal Reserve to ease policy, though disappointing jobs numbers seemed to argue for stimulus.

Data on U.S. consumer prices due on Wednesday is forecast to show the annual rate holding at 2.4% in February.

The Fed's preferred ‌measure of core inflation due on Friday is forecast to hold at 3.0%, well above the ⁠central bank's 2% target, and analysts see a risk of an even higher number.

The danger of energy-driven ​inflation has led markets to wager the next move in rates from the European Central Bank could be up, possibly as early as June.

For the Bank of England, markets have shifted to pricing just a 40% chance of one more easing, compared with two cuts or more before the Middle East conflict started.

Nervous investors sought the liquidity ​of dollars while shunning currencies ‌from countries that are net energy importers, including Japan and much of Europe.

The dollar strengthened 0.4% to trade at ⁠158.40 yen , outweighing safe-haven demand and pushing gold down 1.2% to $5,106 ​an ounce. The euro slipped 0.5% to $1.1557 .

(Reporting by Nell Mackenzie and Wayne Cole; Editing by Thomas Derpinghaus and Bernadette Baum)