Oil and gas prices climbed sharply as tensions in the Gulf intensified, pushing crude above $90 a barrel and rattling financial markets. The move revived concerns that higher energy costs could keep inflation under pressure at a time when investors had hoped price growth would cool more steadily.
Those inflation worries hit bond markets, where prices fell and yields moved higher. Traders also adjusted expectations for US monetary policy, with futures markets indicating a greater chance that the Federal Reserve could still raise interest rates again before the end of the year.
Stock markets were left in a cautious mood as the jump in energy prices added another layer of uncertainty for investors. Higher borrowing costs and persistent inflation can weigh on company valuations, making equities more sensitive to shifts in macroeconomic outlook.
Attention is also turning to a busy stretch of major technology earnings, with markets watching closely for signs of how the AI-driven rally is holding up. Results and guidance from large tech groups are likely to shape sentiment as investors weigh strong growth expectations against rising rates and renewed inflation risks.
