MOSCOW
A drone strike on an industrial facility in Russia's Perm region injured five people and damaged production capacity, Governor Dmitry Makhonin said. The attack immediately lifted oil and metal futures, with crude climbing 1.2 percent as traders priced supply disruption risk.
The Perm region hosts major refining, chemical, and machinery plants. Emergency services were assessing damage overnight. Officials have not yet disclosed the facility's specific output or the duration of operational downtime, but any meaningful capacity loss could tighten global energy markets.
Russia supplies roughly 10 percent of global crude oil and significant volumes of palladium, nickel, and aluminum. Bond markets are pricing the inflation read-through sharply. The 10-year Treasury yield jumped 8 basis points to 4.31 percent as investors extended duration exposure upward in anticipation of sustained commodity pressure. Two-year yields, more sensitive to near-term rate expectations, rose 5 basis points to 4.68 percent, leaving the curve stee. Spread-conscious traders noted the flight-to-safety bid in long Treasuries despite the steepening move—a signal that inflation risk premiums are widening faster than Fed-cut expectations are shifting. Crude oil futures for April delivery jumped to $87.50 per barrel, while palladium spiked 2.8 percent on supply concern.
Equity markets gave back early gains. The S&P 500 fell 0.5 percent to $7,624 and the Nasdaq declined 0.2 percent to $25,955 as energy and materials stocks diverged. Alphabet and Amazon dropped 1.2 percent and 1.0 percent respectively, reflecting broad risk aversion.
Central banks will watch for official Russian statements on facility recovery timelines. Any hint of sustained outages could force the Fed and ECB to recalibrate inflation forecasts heading into spring, potentially delaying the rate-cut calendars priced into longer-dated swaps.
