Investors Still on Edge Over War, Debt and Inflation

Investors on Wednesday weighed the aftermath of a wave of strikes across the Middle East, with stocks and bonds fluctuating in a choppy trade.

U.S. forces hit military targets in Iran, and Iran retaliated against American bases in Jordan and Iraq. Commercial ships in the Persian Gulf have also come under attack. The surge in violence in recent days, after a month without U.S. strikes, has pushed oil prices back above $90 a barrel. In turn, the higher cost of energy is feeding through to more expensive gasoline, diesel and other refined fuels.

Fears of accelerating inflation have bucked financial markets, especially bonds, compounding worries about government debt levels and deficits. Rising borrowing costs also threaten to squeeze consumers and businesses, another risk to the stock market.

Article source: https://www.nytimes.com/2026/09/02/business/oil-bond-yields-iran.html