New Climb in Oil Prices Sends Bond Yields Near 2026 Highs -- WSJ

Oil prices and bond yields are rising again, tightening financial conditions as Middle East and Ukraine tensions “squeeze markets on multiple fronts.” Brent crude is trading more than $20 above its early-July lows, pushing oil back toward near-$100 a barrel. That rebound has lifted average gas prices at the pump above $4 a gallon and is raising inflation concerns. With higher energy prices feeding expectations of renewed inflation, 10-year Treasury yields are moving toward their 2026 peak, while traders now assign just under a 25% probability to a Fed rate increase next Wednesday, up from about 16% at the start of the week. Equity trading is subdued: the Nasdaq is slipping after a chip-stock rally, while the Dow is slightly higher. Big Tech earnings from Alphabet, Tesla, and IBM arrive after the bell.