Finance

Global energy markets reacted sharply to the breakdown of the U.S.-Iran peace deal, with Brent crude futures jumping more than 5% to reach approximately $78 per barrel. The Treasury Department's decision to revoke Iranian oil export licenses further heightened concerns over a potential supply crunch in the critical Strait of Hormuz.

The yield on the 10-year U.S. Treasury note surged toward 4.58% as the spike in energy prices reignited fears of persistent inflation. This upward movement in yields has increased the probability of a Federal Reserve interest rate hike in September, with markets now pricing in roughly a 50% chance of further tightening.

Tech stocks faced significant pressure as a downturn in the semiconductor sector, led by major losses in Intel and AMD, pulled the Nasdaq Composite down by more than 1%. Investors are questioning current AI valuations following Samsung's latest earnings report, which highlighted concerns about future demand and heavy capital expenditure in the industry.