Finance

Global oil benchmarks spiked after direct military action and the revocation of Iranian oil export licenses threatened key maritime routes in the Strait of Hormuz. Brent crude climbed approximately 5% to settle near $80 per barrel, raising immediate concerns regarding future inflation and the necessity for restrictive monetary policy.

Yields on long-dated U.S. Treasuries advanced as investors reacted to the potential for higher energy costs to stall disinflationary progress. The 10-year Treasury yield rose to approximately 4.57%, marking its highest level since May and reinforcing expectations that the Federal Reserve will maintain elevated interest rates for an extended period.

Despite the increase in geopolitical volatility, digital assets and gold faced downward pressure as the U.S. dollar strengthened. Bitcoin fell more than 1% to trade near $62,000, while gold futures saw a significant drop as the market weighed immediate inflationary risks against a more aggressive outlook for central bank tightening.