Crude Oil Prices Again Surpass $90 in Global Market
Crude oil prices have risen again in global markets as hopes of a swift resolution to the conflict between the United States and Iran fade. On Tuesday, the benchmark Brent crude price surpassed $90 a barrel, reaching $91—the highest level since July. US benchmark WTI also rose 0.7% to $85 a barrel.
In June, Washington and Tehran signed a 60-day ceasefire agreement aimed at easing the conflict, reopening the Strait of Hormuz, a vital route for global oil shipments, and reaching a lasting peace deal. However, the agreement officially expired on Monday without any progress. Instead, tensions between the two sides have intensified. US President Donald Trump’s threat to bomb Oman if it obstructed US efforts has raised fresh concerns among global supply-chain operators and market participants.
Alongside rising oil prices, government bond yields are also increasing significantly worldwide. Traders believe that if prolonged conflict keeps oil prices elevated, central banks will have to maintain higher interest rates to contain inflation.
A Reuters report on Tuesday said the yield on US 30-year Treasury bonds rose to 5.33%, its highest level in two decades. Germany’s 10-year government bond yield also reached its highest level in 15 years.
Analysts at Deutsche Bank said the rise in long-term government bond yields worldwide indicates that fiscal and economic pressures.
