Investors Shift Funds as Oil Prices Rise and Inflation Fears Grow

Global equity funds face record outflows as oil prices hit $109.97, sparking inflation worries and rate hike fears.

September 11, 2026 One Min Read

POLICY WIRE — New York, United States — Global equity funds experienced a major outflow of $15.52 billion during the week ending September 9, marking the largest net withdrawal since March 18, as rising oil prices and geopolitical tensions fueled concerns about inflation and higher borrowing costs.

Data from LSEG Lipper revealed that U.S. equity funds saw a significant net outflow of $32.27 billion, driven by heightened anxiety over the U.S.-Iran conflict and its impact on energy markets. Meanwhile, European and Asian equity funds attracted inflows of $11.16 billion and $3.03 billion, respectively, showing regional divergence in investor sentiment.

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Brent crude surged to a four-month high of $109.97 per barrel on Friday, surpassing the $100 threshold earlier in the week. This spike, combined with strong August producer price data, intensified expectations of a Federal Reserve rate hike. Sectoral funds saw modest inflows, led by technology and financials, while bond funds continued to attract capital, with short-term bond funds posting their second-largest weekly inflow in three months.

Reporting by Policy-Wire (PW)

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