Finance

International oil benchmarks extended sharp gains after a major escalation in the Middle East saw the United States and Iran trade direct military strikes overnight. Brent crude futures moved past $95 per barrel and West Texas Intermediate rose toward $91 amid rising concerns over prolonged energy supply disruptions. The threat of an extended closure of the crucial Strait of Hormuz waterway continues to underpin the energy market's upward momentum.

A synchronized global bond sell-off has deepened, pushing the benchmark 10-year U.S. Treasury yield to roughly 4.80%, its highest mark in 20 months. Investors are adjusting portfolios in response to heavy government borrowing, sticky inflation data, and hawkish signals from the newly appointed Federal Reserve Chair Kevin Warsh regarding upcoming interest rate policy. This rapid rise in fixed-income yields has started to exert significant mechanical pressure on broader equity valuations.

Precious metals registered steep losses, with spot gold tumbling near a multi-week low of $4,330 per ounce and dropping roughly 6% to 9% from its recent peak. The safe-haven asset is grappling with a stronger U.S. dollar index, which climbed near 99.8, alongside higher Treasury yields that increase the opportunity cost of holding non-yielding bullion. The market's focus has shifted to how soaring energy prices will impact the Federal Reserve's long-term interest rate trajectory.