Escalating conflict in the Middle East has pushed oil prices sharply higher and driven U.S. Treasury yields towards multi-month highs, prompting investors to question whether the resilience of the U.S. stock market can withstand mounting geopolitical and inflationary pressures.
According to Reuters, Brent crude briefly climbed above $100 a barrel last week for the first time since May after renewed attacks disrupted shipping routes in the Strait of Hormuz and the Red Sea, stoking fears of tighter global supplies. Although crude prices eased at the start of the week following signs of a temporary pause in hostilities, they remain well above pre-conflict levels, keeping inflation concerns alive.
