Brent crude rises above $90 per barrel while Treasury yields climb amid prolonged U.S.-Iran standoff over Hormuz shipping lanes.
Global markets faced pressure Monday as Brent crude prices surged past $90 per barrel and 10-year Treasury yields climbed to 4.3%, driven by stalled U.S.-Iran negotiations over the Strait of Hormuz. The impasse raises concerns over prolonged supply disruptions in a key oil transit route, affecting nearly 20% of global crude shipments.
Oil prices have risen over 12% in the past month, while bond yields have increased 30 basis points since mid-July. Analysts cite heightened geopolitical risk premiums as the primary driver, with no immediate resolution in sight.
Equities dipped in early trading, with energy stocks outperforming while rate-sensitive sectors lagged. The dollar strengthened modestly against major currencies as investors sought safety.