Oil prices surge after U.S. renews Iran strikes, heightening inflation fears

Oil prices surged Tuesday after the U.S. military announced further strikes against Iran, deepening inflation concerns and extending an earlier market sell off in stocks and bonds.

The global Brent crude oil benchmark climbed more than 5% to approximately $95 a barrel, while U.S. crude prices climbed nearly 6% to nearly $91 a barrel.

The S&P 500 dropped 0.71%, while the tech-heavy Nasdaq fell approximately 1%.

The yield on the 10-year Treasury note, which represents the return investors demand for lending money to the U.S. government for a decade, hit its highest level since January 2025, rising to about 4.8%.

The 10-year yield serves as the benchmark borrowing rate for most common consumer lending in the U.S. economy — mortgages, auto loans and credit card debt. That means average consumers are likely to face higher borrowing costs in the weeks and months ahead.

Stocks and bonds had already come under pressure earlier in the day from a global bond selloff and fears that an interest-rate hike this month by the Federal Reserve would tamp down economic growth.

Fed Chairman Kevin Warsh indicated last week that the central bank is uncomfortable with the current rate of inflation, remarks investors interpreted to…

Original source: https://www.nbcnews.com/business