Crude Surges Above $100 as Trump Threatens Military Action
Brent crude settled above $100 per barrel for the first time since late May after Yemen's Houthis claimed strikes on two Saudi oil tankers in the Red Sea. President Donald Trump warned that the U.S. will hold Iran responsible for any further attacks, and threatened 'major military punishment'.
The 10-year Treasury yield rose to its highest level since January 2025 as surging oil prices reignited inflation fears. This sent stocks plummeting, with the S&P 500 and Nasdaq experiencing their worst one-day performances since June 23.
The European Central Bank kept interest rates unchanged but traders now expect a rate hike in September due to renewed Middle East hostilities and higher oil prices posing upside risk to the euro zone inflation outlook.