U.S. equities fell sharply after Brent crude topped $100 and Treasury yields hit 2025 highs amid escalating Middle East tensions.
The S&P 500 slid nearly 2% on Thursday, marking its steepest decline in a month, as investors reacted to surging oil prices and rising Treasury yields. Brent crude futures climbed above $100 per barrel, while the 10-year Treasury yield breached 4.7%, its highest level since January 2025, following reports of attacks on tankers near Saudi Arabia.
West Texas Intermediate crude jumped 6% to $92 per barrel, up over 28% from recent lows below $70. The S&P 500 has now fallen about 2% since U.S. strikes against Iran began on July 12. In March, the index dropped more than 7.5% as oil surged nearly 70% and stagflation fears resurfaced.
Market strategists noted the shift in sentiment, citing the difficulty of ignoring $100 oil and yields above 4.7% as key drivers of the selloff.