Finance

Crude oil prices spiked significantly after a sharp escalation in military hostilities between the United States and Iran in the Strait of Hormuz. West Texas Intermediate surpassed the $100 per barrel mark, while the international benchmark Brent crude traded higher above $105 per barrel. The sudden energy surge has renewed fears of a prolonged supply disruption and broader macroeconomic headwinds.

U.S. government bond yields experienced a sharp upward movement as surging oil prices and inflation tracking raised the probability of aggressive central bank policy. The benchmark 10-year Treasury yield surged past 4.9%, marking its highest level since late 2023. Bond market volatility accelerated despite recent efforts by the Treasury Department to contain borrowing costs through long-term debt buybacks.

Digital asset prices retreated, with Bitcoin sliding toward $77,000 and Ethereum dipping to around $2,460. The downward pressure mirrors broader macro market anxiety as participants reassess risk assets in light of higher-than-expected inflation metrics. Market odds for a Federal Reserve interest rate hike next week have steadily climbed, creating short-term headwinds for the crypto sector.