Finance

Crude oil prices spiked as military escalations between the United States and Iran renewed fears of shipping disruptions through the critical Strait of Hormuz. Both West Texas Intermediate and Brent crude futures jumped significantly, benefiting large energy producers like Chevron and ExxonMobil while raising broader macroeconomic concerns.

U.S. Treasury yields pushed upward as the prospect of persistent inflation driven by energy prices altered central bank expectations. The 10-year Treasury yield climbed to its highest intraday level since January 2025, convincing a growing majority of market participants that the Federal Reserve will implement another interest rate hike at its upcoming policy meeting.

Spot gold prices fell substantially, losing roughly two percent as escalating bond yields increased the opportunity cost of holding non-yielding bullion. Despite historically strong central bank purchasing data from earlier in the year, growing consensus for tighter monetary policy later this month triggered a broad retreat in precious metals.