Finance

Energy markets reacted sharply to news of U.S. retaliatory strikes against Iranian targets and the revocation of crude oil sales authorizations. Brent crude oil prices climbed 5% to exceed $78 per barrel, fueling broader concerns that higher energy costs could lead to persistent inflationary pressure.

The yield on the 10-year U.S. Treasury note surged to its highest level since May, closing at approximately 4.57%. This rise in yields, driven by expectations that the Federal Reserve may maintain elevated interest rates to combat oil-driven inflation, has put additional pressure on rate-sensitive sectors and borrowing costs.

While broader tech markets faced pressure from high-flying chip stock corrections, Broadcom shares rose more than 4% following a reported $30 billion agreement to supply custom silicon to Apple. However, the sector overall remained volatile due to reports of new competition in the AI chip space and fluctuating demand expectations.