Finance

Crude oil benchmarks Brent and WTI continued to rise as diplomatic efforts to resolve the conflict in Iran faced setbacks, including the cancellation of peace talks. Analysts warn that a prolonged closure of the Strait of Hormuz could push oil prices toward $150 per barrel, fueling broader inflationary pressures. This energy surge is already impacting consumer behavior, with U.S. gasoline demand reportedly down 5% year-on-year.

The yield on the 10-year U.S. Treasury note held steady near 4.35%, though the broader yield curve has shown signs of flattening as short-term rates rise. In the options market, traders are increasingly placing wagers that long-dated bond yields could surge past 5% if oil-driven inflation persists. These high yields are sustaining attractive rates for high-yield savings accounts, which currently offer up to 5.00% APY.

Bitcoin rebounded from key support levels to trade around $77,700 on Wednesday morning, recovering from a slight dip earlier in the week. Institutional demand remains a pillar of the digital asset market, highlighted by new BTC-linked bond issuances and expanded partnerships for institutional options trading. Despite recent gains, the cryptocurrency continues to face pressure from a broader 'risk-off' sentiment linked to rising energy costs and upcoming central bank policy shifts.