Finance

Oil prices jumped approximately 4%, with Brent crude passing $104 per barrel due to fresh Iranian attacks on tankers in the Strait of Hormuz and reports of potential large-scale U.S. military operations. Additionally, domestic supply faced pressure as Hurricane Isaias forced the shutdown of about a quarter of crude production in the Gulf of Mexico. Prices later settled slightly below their session peaks following political reassurances concerning the timing of potential strikes.

U.S. sovereign debt yields experienced volatile trading, initially climbing early in the session due to mounting inflation fears driven by energy shocks. However, yields reversed course and stabilized later in the day after a $22 billion auction of 30-year Treasury bonds met robust investor demand. The positive reception mirrored a strong 10-year note auction from the previous day, bringing relief to a bond market hit by high inflation worries.

Weekly initial jobless claims in the United States dropped for the fifth consecutive week to 197,000, coming in below the consensus estimates of economists. The persistently tight labor market has applied further pressure on the Federal Reserve to maintain its restrictive monetary policy stance. Investors are subsequently boosting the implied probability of subsequent interest rate hikes at the central bank's upcoming meetings.