Crude Oil Prices Soar as Pipeline Shutdown Continues

Crude oil prices surged to their highest level since early May on Tuesday, reaching $106.53 per barrel as West Texas Intermediate futures rose by 5.1%. The increase was largely due to Saudi Arabia's East-West pipeline remaining shut, which has led to delays and cancellations in crude deliveries to European refiners.

Saudi Aramco has begun canceling or delaying shipments, and Energy Secretary Chris Wright told CNBC that the pipeline restart will be measured in days.

The price rally is having a ripple effect on other markets, with the 10-year Treasury yield breaking through 5% for the first time since July 2007. This development has rekindled inflation concerns, with markets pricing a nearly 92% chance of a 25-basis-point rate hike by the Federal Reserve on Wednesday.