Finance

The aggressive selloff in the fixed-income market moderated, with long-dated yields pulling back slightly from multi-year peaks reached earlier in the session. The 10-year U.S. Treasury yield touched an intraday high of 4.818% before settling lower at 4.78%, while the 2-year yield dipped to 4.37%. Despite the breather, investor expectations remain elevated for a potential Federal Reserve interest rate hike at the upcoming September meeting.

Energy markets remained highly volatile following renewed military strikes between the United States and Iran, triggering deep concerns over maritime supply routes in the Strait of Hormuz. Global benchmark Brent crude rose roughly 1% to settle at $95.63 per barrel, while West Texas Intermediate neared $91 per barrel. Analysts note that these heightened geopolitical tensions are feeding broad macroeconomic fears of persistent inflation.

Digital assets experienced downward pressure as investors reacted to escalating geopolitical instability and its implications for monetary policy. Bitcoin slipped underneath the $77,000 threshold, while Ethereum hovered around $2,400 amid fears that prolonged energy inflation will force central banks to keep borrowing costs higher. Because non-yielding risk assets do not offer interest, crypto values remain highly sensitive to a hawkish Federal Reserve outlook.