Finance

United States government bond yields remained near historic multi-decade highs, reflecting deep market concerns over persistent inflation. Although yields steadied slightly following a brutal fixed-income selloff, investors continue to demand higher returns as the ongoing geopolitical conflict between the U.S. and Iran threatens the global economic backdrop.

Brent and WTI crude oil prices consolidated following a recent surge triggered by the U.S. rejection of Iran's terms for reopening the strategic Strait of Hormuz. High energy prices continue to stoke inflation concerns, forcing traders to weigh increased Middle Eastern exports against structural supply vulnerabilities and ongoing ship-to-ship transfer inefficiencies.

Spot gold crashed nearly four percent toward multi-week lows before finding slight stabilization, pressured heavily by a robust U.S. dollar and expectations of an aggressive interest rate trajectory. Because elevated energy costs threaten to embed inflation, investors are increasing their bets on autumn and winter rate hikes by the Federal Reserve, thereby diminishing the appeal of non-yielding precious metals.