Finance

Energy markets responded sharply to the escalating military conflict between the United States and Iran near the Strait of Hormuz. Brent crude futures jumped over 2.5% to settle back above the $90 per barrel mark. This sudden surge in energy costs has immediately reignited market anxieties regarding persistent inflationary pressures.

Market participants are heavily pricing in a potential interest rate hike at the upcoming September policy meeting following hawkish commentary from Federal Reserve Chairman Kevin Warsh. The probability of a 25-basis-point increase shot up toward 66% after the central bank leader emphasized that inflation remains uncomfortably high. Treasury yields advanced alongside these shifting expectations, with the 10-year note climbing to 4.76%.

Gold and silver futures extended their recent losses as global spot benchmarks declined sharply on Monday. Gold futures fell over half a percent to land around $4,466 per ounce, pressured by a combination of geopolitical risk reallocations and higher yield environments. Investors are continuing to rotate away from non-yielding commodities as expectations for higher interest rates solidify.