Uncertainty over Middle East developments drives oil higher, with yields dropping 8 bps and the S&P 500 reaching a record.
Oil prices rose $3 per barrel amid escalating Middle East tensions, though the exact drivers remain unclear. Recent attacks on ships and conflicting rhetoric from Iran and the U.S. have heightened concerns over regional stability and shipping disruptions.
Public data shows reduced shipping activity in the area, while Iran’s claims over the Strait of Hormuz and U.S. military actions add to market unease. Despite the lack of clear triggers, the move reflects broader geopolitical risks.
The rally rippled through markets, pushing U.S. Treasury yields down 7-8 bps and lifting the S&P 500 to an intraday record, up 0.8% on the day.