Oil Prices Soar as Global Tensions Escalate
The global economy is experiencing a significant shockwave as U.S.-Iran tensions escalate. The recent round of strikes against Iran has disrupted shipping through the Strait of Hormuz, leading to a surge in oil prices. Brent crude rose 4.6% overnight to $94.65/bbl, while WTI gained 5.2% to $90.22/bbl.
The higher energy prices combined with fiscal and inflation concerns have driven a synchronized selloff across global long-duration bonds. The U.S. 10-year Treasury yield rose to around 4.79%, its highest level since January 2025.
This macroeconomic pressure has weighed heavily on risk assets, with the Dow falling 0.79% to 52,766.88 and the S&P 500 dropping 0.71% to 7,631.47. Bitcoin (BTC) also retreated from around $79K yesterday, briefly falling to $76.4K before recovering toward $77K.