Finance

U.S. West Texas Intermediate and international Brent crude futures surged significantly, settling above $100 a barrel to reach their highest points in months. The sharp increase follows intensified geopolitical friction in the Middle East, including disruptions near major export chokepoints and attacks on energy facilities. The prolonged conflict continues to fuel widespread concerns regarding persistent global inflation and strained energy logistics.

U.S. government bond yields moved upward, with the benchmark 10-year Treasury yield climbing past 4.95% to trade near its highest level since late 2023. Wholesalers faced accelerating producer price data for August, which intensified market concerns about stubborn inflation. Additionally, a government debt buyback operation failed to meet its maximum target, keeping upward pressure on longer-term yields.

Traders have raised their expectations for a central bank interest rate hike at the upcoming monetary policy meeting. Probability trackers now show roughly a 62% to 70% chance of a quarter-point rate increase, rising in response to the latest producer price index metrics and energy-driven inflation risks. Investors are keeping a close watch on upcoming consumer price data for definitive clues on near-term monetary adjustments.