Rising Yields and Mideast Tensions Spark Global Market Rout
Global markets took a hit on Tuesday as concerns over rising US Treasury yields and escalating tensions in the Middle East drove oil prices to multi-month highs. The Iranian-backed Houthi rebels' recent attack on Saudi Arabia fueled supply worries, pushing November-delivery Brent crude oil up 1.7% to $107.4 a barrel.
The US 10-year Treasury yield climbed to 5.03%, its highest level since July 2007, as markets priced in persistent inflation risks. Meanwhile, technology shares led declines on Wall Street as calls to slow artificial intelligence development weighed on semiconductor stocks.
US President Donald Trump said oil prices would fall when the Iran conflict ends, but the benchmark has climbed steadily amid regional hostilities. The Federal Reserve's two-day policy meeting got underway on Tuesday, with markets expecting a rate hike, the first since July 2023, as inflation concerns persist.