Middle East Violence Sends Oil Prices Soaring
Oil prices rose by 2% on Tuesday as violence flared in the Middle East, adding to uncertainty over the future of the conflict.
The Iran war has curtailed traffic in the Strait of Hormuz, which accounts for about 20% of the world's oil shipments. Brent crude gained 2% to $92.35 per barrel, while U.S. benchmark crude climbed 2.5% to $87.84 per barrel.
Stocks wavered globally as a result of the increased tensions, with Germany's DAX losing 1.1% and Britain's FTSE 100 declining 1.1%. In Asian share trading, Hong Kong's Hang Seng fell 0.9%, while Tokyo's Nikkei 225 gave up early gains to fall 0.2%.
The increased energy prices have fueled already stubbornly high inflation, which is above the Federal Reserve's 2% target. The yield on the two-year Treasury held steady at 4.34%, and the 10-year Treasury rose to 4.75%. The U.S. will report August jobs data later this week.