Finance

Energy markets spiked significantly after American forces targeted Iranian rocket launchers on the Strait of Hormuz, prompting a retaliatory missile strike from Tehran against U.S. facilities in Jordan. Brent crude futures jumped past the $90 per barrel threshold, while West Texas Intermediate climbed over $86 per barrel. Investors are monitoring the situation closely due to the high risk of supply infrastructure disruptions in the Gulf.

The yield on the 10-year U.S. Treasury note advanced to 4.75%, reaching its highest mark since early 2025. Bond markets are selling off heavily following hawkish comments from Federal Reserve officials, including Chairman Kevin Warsh, who indicated that inflation has not slowed down enough to rule out future interest rate hikes. Higher fixed-income yields continue to exert pressure on corporate valuations and real estate sectors.

Spot gold prices softened below $4,450 per ounce, giving up a portion of the historical 10% gain achieved throughout August. Although escalating safe-haven demand normally supports precious metals, it is currently being countered by expectations of prolonged higher interest rates from the Federal Reserve. Analysts note that while institutional buying has routinely cushioned recent corrections, market sentiment remains highly sensitive to upcoming inflation data.