US Stocks Slump as Iran Tensions Escalate, Oil Prices Soar
US stocks are set for a weak start as tensions between the US and Iran escalate, pushing oil prices higher and inflation concerns back into focus. The Dow Jones index has slipped, while European markets have also fallen across the board.
The latest development is President Trump's decision not to extend the ceasefire with Iran, which expired yesterday. This move has seen Iran shift to a fully offensive military posture as diplomatic efforts to end the war have stalled.
Oil prices are now pushing towards $90 a barrel, while the 10-year Treasury yield has reached its highest level since January 2025 and the 30-year Treasury yield has hit its highest level since 2007. Investors are increasingly concerned about the possibility of a prolonged inflation shock.