Oil Surges 7%, Reaching $103.06 Amid Iran War Uncertainty and Inflation Concerns

Oil prices surged by 7% on September 10, reaching as high as $103.06 after US President Trump indicated that the Iran war wouldn't end until after the midterms.

The jump in oil was compounded by a slightly hot PPI report, which raised concerns about inflationary pressures ahead of tomorrow's pivotal CPI report.

Fed pricing is currently at 70% chance of a hike, but this could change to 40% or 95% depending on the outcome of the CPI report.

The Treasury market was unequivocal in its reaction, with yields rising 8-14 bps across the curve, led by the front end.