Overview
- Brent and U.S. crude climbed back above $100 this week, with Brent reaching roughly $105–$110 and touching about $110 on Friday after renewed U.S.–Iran strikes and Houthi advances disrupted the Strait of Hormuz and Red Sea shipping.
- Diesel and other refined fuels hit record or near‑record highs as inventories fell to critically low levels, producing local shortages and pushing pump prices above historical highs in several countries.
- Global government bond yields jumped to multi‑year peaks, with the U.S. 10‑year yield approaching 5% and 30‑year yields at long‑run highs, while major equity indexes slipped on mounting inflation concerns.
- Markets sharply raised the odds of an imminent Federal Reserve rate increase and the ECB moved first, raising rates on Sept. 10, as traders priced faster and broader central‑bank tightening to counter energy-driven inflation.
- Analysts warn that if the conflict and shipping disruptions persist, Brent could rise into the $120–$150 range, deepening inflation, raising borrowing costs for households and firms, and increasing the risk of a broader economic slowdown.