Finance

International crude prices accelerated upward, with Brent crude tracking above $90 a barrel due to a widening diplomatic stalemate in the Persian Gulf. The expiration of critical naval agreements and subsequent political rhetoric have stoked concerns regarding prolonged disruptions to crude shipping corridors.

A broad selloff in government bonds pushed fixed-income yields higher, with the 30-year U.S. Treasury yield topping 5.3% to reach its highest level since 2007. The sudden movement reflects escalating market fears that rising energy costs will inject persistent inflationary pressures back into the economy.

Market participants are adopting a cautious stance ahead of pivotal second-quarter corporate earnings reports from major retail companies, including Walmart, Home Depot, and Target. These upcoming reports are highly anticipated following softer-than-expected July retail sales data, which raised questions about consumer spending power.