Finance

Energy prices spiked dramatically following direct U.S. military strikes on Iranian rocket launchers near the Strait of Hormuz. International benchmark Brent crude futures advanced over 2.7% to trade above $90 per barrel, while West Texas Intermediate crude tracking rose past $86 per barrel. The sudden escalation reawakened investor anxieties regarding major supply route disruptions in the region.

U.S. government bond yields moved sharply upward as market expectations for an impending interest rate hike intensified. Following restrictive policy remarks from Federal Reserve Chairman Kevin Warsh at Jackson Hole, the benchmark 10-year Treasury yield surged to 4.76%, hitting its highest mark since early last year. Traders are currently pricing in a greater than 60% probability that the central bank will raise interest rates at its upcoming September meeting.

Precious metals extended a multi-day slide, with spot gold dipping toward $4,450 per ounce due to a strengthening U.S. dollar and elevated bond yields. Rising interest rate expectations heavily penalized the non-yielding asset, amplifying its short-term opportunity costs for investors. However, despite the recent pullback driven by hawkish central bank commentary, gold still secured its best monthly performance since February with a nearly 10% gain across August.