Treasury Yield Tops 5% as Oil Prices Soar and Diesel Hits Record High

The 10-year U.S. Treasury yield briefly surpassed 5% on Monday for the first time since 2023, amidst rising oil prices and a record high nationwide average cost of diesel fuel.

The international oil benchmark, Brent crude, surged to over $109 per barrel, while U.S. crude oil nearly hit $105 per barrel. The East-West Pipeline, a key route for energy supplies, became even more critical due to the ongoing stalemate in the Strait of Hormuz, where vessel traffic has barely reached double digits in recent days.

U.S. Energy Secretary Chris Wright said he did not have an exact time frame for when the pipeline may restart but believed it would be 'very soon.' However, two regional officials cited by the Associated Press reported that the pipeline could be out of service for weeks as damage is repaired.