Finance

Crude oil futures jumped significantly, with Brent crude rising over 6% to surpass $78 per barrel after the U.S. conducted retaliatory airstrikes and revoked oil sales waivers for Iran. Investors are increasingly concerned that conflict in the Strait of Hormuz could block critical shipping lanes, potentially reigniting global inflation pressures.

The yield on the 10-year U.S. Treasury note climbed to approximately 4.58%, its highest level in four weeks, as rising energy costs sparked concerns of persistent inflation. This upward movement in yields has placed additional pressure on rate-sensitive sectors, including housing and technology, while reinforcing expectations for further Federal Reserve rate hikes.

Minutes from the Federal Reserve's June meeting, released under new Chairman Kevin Warsh, show officials are sharply divided on the path of inflation and interest rates. While the committee recently held rates steady, members remain split on whether current economic conditions and Middle East instability will require a return to monetary tightening later in 2026.