Oil Prices Surge as Strait of Hormuz Tensions Persist
Crude oil prices continue to rise as tensions over the Strait of Hormuz persist. Brent crude has gained 1% to $91.91 a barrel, while U.S. benchmark crude oil rose 1.1% to $84.99 per barrel.
The conflict in the region is driving up bond yields, with the 10-year U.S. Treasury yield edging down to 4.70% from 4.72%, but remaining well above its pre-war level of 3.97%. This increase in yields has sent the average long-term U.S. mortgage rate near its highest level in a year.
Meanwhile, AI-related stocks have become volatile in recent months, with shares of Oracle, Marvell Technology, and Intel falling nearly 2% each. The S&P 500 futures are relatively unchanged, while those for the Dow Jones Industrial Average rose 0.1%. Nasdaq futures declined 0.1%.
The Federal Reserve will release minutes from its recent meeting on August 19, which may provide insight into future interest rate decisions. President Donald Trump's decision to delay U.S. tariffs on $20 billion worth of Canadian imports has also been met with mixed reactions in the markets.