Oil Prices Soar as US-Iran Tensions Escalate

Global markets experienced significant fluctuations as tensions escalated between the US and Iran. After a resumption of military clashes, oil prices surged more than two percent, with Brent crude futures rising to $90.49 a barrel and West Texas Intermediate climbing to $85.76.

The increased risk of inflation led to higher bond yields, while stocks experienced declines on Wall Street. The Dow Jones Industrial Average fell 374.09 points, or 0.70 percent, to 53,185.90, and the S&P 500 dropped 25.62 points, or 0.33 percent.

Investors are now pricing in a 65 percent odds of a September Fed interest rate hike, up from around 35 percent before Federal Reserve Chairman Kevin Warsh's comments at Jackson Hole on Friday.