Oil Price Surge Takes Treasury Yield Above 5% Amid Inflation Fears

The U.S. Treasury yield briefly touched 5% on September 14, 2026, as oil prices surged to near $110 a barrel, fueling inflation fears and concerns about Federal Reserve policy.

Investors have been selling longer-dated U.S. government bonds for several weeks due to higher oil prices and the possibility of sustained inflation.

The East-West pipeline in Saudi Arabia was shut down after drone attacks, creating uncertainty over future loadings at Yanbu, a major Red Sea export port, and raising concerns about global oil supplies.