Oil and US gas climb as 10-year Treasury yield rises
Oil prices are up 4.4%, now at $102.31 a barrel, and US gas has crossed $4.41 per gallon, driven by interlocking threats to the oil market, including ongoing conflict in the Strait of Hormuz, Houthi threats to shipping lanes, and a Ukrainian air campaign targeting Russian refineries.
Even with US efforts to limit Iran's influence, instability is pushing up not just fuel costs but also the 10-year Treasury yield to its highest in 24 years, putting extra pressure on the world economy.
Middle East exports 7% below prewar
Middle East crude exports are still about 7% below prewar levels, forcing tankers to take longer and pricier routes to avoid trouble, meaning even higher costs all around.
North Sea crude is now at $127.42 per barrel, and shipping rates keep climbing due to all this uncertainty.
Experts like UBS's Arend Kapteyn point out how sensitive the market is to U.S.-Iran tensions, with price swings making everything from inflation to everyday expenses less predictable for everyone.