US-Iran Standoff Sends Markets into Free Fall
A recent standoff between the US and Iran has sent shockwaves through global markets, driving up oil prices and dragging down stocks. The Brent crude price surged to around $107, fueled by fading optimism for an imminent diplomatic breakthrough in the Middle East conflict.
The S&P 500 almost erased its month-to-date gain, while the tech-heavy Nasdaq 100 lost about 1%. Treasury 10-year yields hit a nearly two-decade high, and money markets increased bets on an October Fed rate hike. The US dollar rose, while gold dipped in value.
Iran's Foreign Minister Abbas Araghchi is set to meet with mediators in New York on Monday, but the country's stance remains unchanged: sticking to a proposal rejected by President Donald Trump. Negotiations have been ongoing for months, yet the conflict has disrupted oil flows through the vital strait.