Finance

Global energy markets experienced sharp gains after U.S. Central Command executed fresh military strikes against Iranian targets, sparking deep concerns over potential transit disruptions through the Strait of Hormuz. West Texas Intermediate futures surged past $90 per barrel, while the international benchmark Brent crude jumped roughly 5% to hover above $95 per barrel.

The yield on the benchmark 10-year U.S. Treasury note climbed to nearly 4.8%, reaching its highest level since January 2025. This intense bond market selloff reflects intensifying investor anxieties that persistent high oil prices will fuel inflation and compel the Federal Reserve to tighten monetary policy later this month.

Small-cap equities suffered disproportionate losses at the start of September, with the Russell 2000 index sliding over 1%. Analysts noted that the downturn highlights a creeping rate sensitivity in the market, as smaller companies with thinner profit margins face greater pressure from elevated borrowing costs compared to their large-cap peers.