Fed Rate Hike Chances Rise as US Jobs Exceed Expectations Amid Ongoing Middle East Tensions

US markets are off to a strong start this week following Friday's surprisingly robust jobs report. The data has increased expectations that the Federal Reserve could raise interest rates at its September meeting.

The Labor Day holiday today means US markets will be closed, resulting in lower liquidity and potentially slower price action.

Meanwhile, tensions in the Middle East remain a pressing concern, particularly around Iran and the Strait of Hormuz. Crude oil prices are elevated as a result, adding to inflation worries.

This has implications for interest rates and yields, with higher oil prices putting pressure on inflation and supporting higher interest rates.