Finance

Oil prices jumped sharply on Monday after reports indicated a breakdown in diplomatic negotiations between the U.S. and Iran. Brent crude climbed nearly 7% to approach $97 a barrel following fresh military clashes and reports that Iran might suspend indirect communication with Washington. The sudden price spike weighed on fuel-sensitive industries, including airlines and cruise operators, while providing a boost to major energy companies like Exxon Mobil and Marathon Petroleum.

The cryptocurrency market faced significant selling pressure, with Bitcoin dropping below the $72,000 mark for the first time in ten weeks. Market analysts attributed the decline to a shift toward safe-haven assets as geopolitical instability in the Middle East rattled investor confidence. Additionally, Bitcoin spot ETFs continued to experience substantial outflows, with total withdrawals from crypto exchange-traded products exceeding $4.2 billion over the past three weeks.

U.S. Treasury yields advanced on June 1 after manufacturing growth exceeded economic forecasts, fueling expectations that the Federal Reserve will maintain high interest rates. The 10-year Treasury yield rose to approximately 4.50%, its highest one-day gain in several weeks, as persistent inflation data tempered hopes for a rate cut in the near term. This upward movement in yields has pushed average long-term mortgage rates to nine-month highs, potentially impacting future corporate borrowing for major infrastructure projects.