Finance

Escalating tensions and military exchanges between the U.S. and Iran have triggered a significant rally in energy commodities, with West Texas Intermediate hitting monthly highs over $92 per barrel. International benchmark Brent crude has soared toward $97 per barrel amid growing concerns over disruptions in the Strait of Hormuz. Analysts note that these sustained energy cost surges are exacerbating global inflationary worries and keeping pressure on fixed-income markets.

The 10-year U.S. Treasury yield experienced a slight pullback to around 4.77% after peaking near its highest levels since late 2023. Borrowing costs remain stubbornly elevated as participants digest a moderate increase in private payrolls alongside expansionary manufacturing activity data. Market focus is heavily shifting toward the upcoming official August nonfarm payrolls report to gauge the Federal Reserve's next policy trajectory.

Spot gold prices climbed back above $4,400 per ounce, finding support from investor hopes that recent military escalations in the Middle East would remain limited in duration. Despite the immediate relief rally, the precious metal faces structural headwinds from shifting monetary expectations. Speculation surrounding a potential Federal Reserve interest rate hike at the upcoming September meeting continues to cap long-term upside for non-yielding assets.