Oil Price Surge Tumbles US Stocks Amid Iran-US Tensions

US stocks declined last week due to escalating tensions between the US and Iran, which pushed oil prices above $100 per barrel.

This led to concerns about inflation and a sharp rise in Treasury yields. The August inflation data showed steady headline Consumer Price Index (CPI) at 3.4% and easing core CPI, but energy-driven producer prices increased.

The market now expects an 87% chance of a Fed rate hike in September, with the 2-year Treasury yield up 26 basis points and the 10-year nearing 5%. Rate-sensitive sectors like mortgage REITs and homebuilders were hit hardest, while apartment REIT M&A remained active.