Oil tops $90 after US-Iran strikes as markets price two-in-three odds of a September Fed hike

Brent settled up $2.39 at $90.49 following US strikes in the Strait of Hormuz; the S&P 500 slipped 0.33% to 7,686 and 10-year Treasury yields hit their highest since January 2025 at 4.758%.

Deepakshi

Kristal Research & Marketing team

1 Sept

Key takeaways — AI summary

US forces struck two Iranian missile launchers on Larak Island over the weekend and Iran reportedly fired back at US bases in Jordan; Brent crude settled up $2.39 at $90.49 a barrel and US crude rose 2.83% to $85.76, with energy leading all sectors up 2.1%.
The S&P 500 fell 0.33% to 7,686 and the Dow lost 0.70%, while the Nasdaq 100 rose 0.08% to 29,457; all three finished August higher.
The 10-year Treasury yield climbed to 4.758%, its highest since January 2025, while the 2-year eased to 4.350%; traders now put the odds of a September Fed rate hike near two in three, up from about six in ten after Chair Kevin Warsh's Jackson Hole remarks.
Utilities fell 1.18% and PG&E dropped 20% — its worst day since March 2020 — after California lawmakers rejected a plan to stop insurers suing utilities over wildfire claims; Edison International had its worst day since 2001.
Tesla led the S&P 500 up 5.05% ahead of its September 3 Cybercab launch while Uber and Lyft each fell 4%; the FTC and over 20 states sued Amazon (down 2.5%) alleging more than $20 billion in ad overcharges.

Generated by Kristal AI · reviewed by the research desk

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