New York, 1 September 2026 – Global bond yields rose and equities weakened as renewed military clashes between the United States and Iran pushed oil prices higher and revived concerns that inflation could keep major central banks restrictive. Brent crude settled at US$90.49 a barrel, up US$2.39 or 2.71%, while West Texas Intermediate gained US$2.36 or 2.83% to US$85.76.
The energy move mattered because markets were already reassessing the interest-rate outlook. Federal Reserve chair Kevin Warsh’s Jackson Hole remarks increased expectations of a September rate rise, with futures pricing a 65% probability, up from roughly 35% beforehand. The European Central Bank was also widely expected to raise rates at its next meeting. Higher oil prices reinforce that shift by threatening to lift transport, production and household energy costs.
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