Oil Prices Surge as Stocks and Bonds Wobble

The price of oil rose above $105 a barrel on Thursday, the highest level in months, and stocks and bonds slumped as geopolitical uncertainty and inflation fears weighed on investor sentiment.

The rise in energy costs threatens to raise prices more broadly, further squeezing consumers and businesses already struggling. Investors are waiting for a crucial report on U.S. inflation, set for release on Friday, that could frame expectations for the Federal Reserve’s decision on interest rates at its meeting next week. Traders believe that a Fed rate increase is more likely than not, according to futures markets.

Rising government bond yields, which move inversely to prices, have spilled over into the market for consumer loans, which are heavily influenced by the 10-year Treasury note.

The average 30-year fixed-rate mortgage, the most common home loan in the United States, has steadily risen in recent weeks, hitting 6.71 percent last week, according to the mortgage financing giant Freddie Mac. Higher rates are putting a damper on the housing market: Sales of existing homes fell 2 percent in August from the month before, the National Association of Realtors said Thursday.

Article source: https://www.nytimes.com/2026/09/10/business/oil-middle-east-iran-war.html