Finance

U.S. West Texas Intermediate and international Brent crude futures surged to their highest levels since May, fueled by escalations in the ongoing war involving Iran and new supply threats in the Red Sea. The continuous surge in energy costs is compounding fears that broader consumer inflation could reignite. Analysts note the military developments have added substantial premium to global crude supply lines.

The yield on the U.S. 10-year Treasury note climbed past 4.9%, its highest intraday level since late 2023, while the 30-year yield touched levels not seen since 2007. Selling pressure intensified after the August producer-price index indicated wholesale inflation picked up due to higher energy costs. Government debt buyback operations failed to pull yields lower as traders ramped up bets on a central bank rate hike.

Digital assets experienced a downward shift with Bitcoin slipping below the $78,000 threshold and Ethereum posting similar daily losses. The pullback in major tokens reflects an overall cautious tone across risk assets as digital currency traders digest hot wholesale price data. The upcoming Federal Reserve meeting is adding friction to the crypto market, with higher interest rates traditionally serving as a headwind for decentralized assets.