Finance

Global energy benchmarks experienced sharp increases, with Brent crude briefly pushing past $107 per barrel and U.S. West Texas Intermediate crossing $100. The rapid ascent follows intensified military conflicts involving the U.S. and Iran, re-igniting structural anxieties regarding major disruptions to supply flows through the Strait of Hormuz.

The 10-year U.S. Treasury yield surged past 4.9% to reach its highest point since late 2023, while the 30-year yield touched levels not seen since 2007. This sharp bond selloff was catalyzed by August producer price index metrics showing annual wholesale inflation accelerated to 5.4%, matching or slightly exceeding baseline expectations.

Following the latest batch of domestic inflation reports and persistent upward momentum in commodity prices, traders have ramped up expectations for a monetary policy tightening cycle. Implied probabilities gathered via tracking tools show the likelihood of a 25-basis-point interest rate increase at next week's policy meeting has climbed to approximately 70%.