Oil Prices, Inflation Pressures Weigh on Stock Markets

Stock markets edged closer to their all-time highs on Monday, despite rising oil prices putting pressure on inflation and financial markets. The Standard & Poor's 500 index fell by 0.5%, while the Dow Jones industrial average dropped 0.5%.

The S&P 500 remains near its record high set Thursday, while the Nasdaq composite slipped 0.3%. Oil prices accelerated upward in the afternoon, with Brent crude rising 2.7% to $90.87 per barrel.

The price jump was largely due to uncertainty surrounding the war between Iran and the US, which has impacted global oil flows. This has led to a surge in Treasury yields in the bond market, increasing pressure on the economy and prices for investments.

Higher interest rates could help curb inflation, but would do so by slowing down economic growth. The average long-term U.S. mortgage rate has jumped near its highest level in a year due to the rise in 10-year Treasury yields.