The situation in the US-Iran war worsens, oil prices rise by 4%, and the surge in US Treasury yields impacts US stocks, causing them to fall.

Due to the worsening Middle East conflict, a sharp rise in U.S. Treasury yields, and increasing energy prices, market concerns about rising inflation pressures have intensified, causing major U.S. stocks to retreat from previous gains. The overall market sentiment has become more cautious, with energy stocks such as ConocoPhillips (COP) and ExxonMobil (XOM) being among the few sectors to rise. The market remains generally subdued.

Escalating Middle East conflict triggers significant market volatility

U.S. crude oil prices rose 4% in early trading, with Brent crude surpassing $100 per barrel. The escalation of the war has once again sparked panic in the markets. Although Iran is reviewing the U.S. proposal, it refuses direct negotiations. The U.S. has increased military presence in the region, further fueling fears.

10-year U.S. Treasury yields soar, dragging down stocks

Gold and silver prices fell early by 2% and 6%, respectively, with double-digit declines since the outbreak of war, reflecting market expectations that central banks worldwide may maintain high interest rates to combat inflation caused by rising oil prices. Meanwhile, the 10-year U.S. Treasury yield surged 5 basis points to around 4.4%, nearing recent highs, becoming a primary pressure on the stock market.

U.S. import prices hit largest increase since 2022

U.S. government economic data shows that February import prices rose 1.3% from the previous quarter, the largest increase since March 2022. Energy costs are being passed on to consumers. According to AAA, the average gasoline price neared $4 per gallon, while diesel approached $5.40, increasing logistics and agricultural costs. USPS also announced an 8% fuel surcharge. Markets are now focused on the upcoming University of Michigan March consumer confidence index, especially inflation expectations, which are key indicators of future consumer spending momentum.

Federal Reserve Chair Powell’s criminal investigation affects Kevin Warsh’s nomination

The Federal Reserve (Fed) is experiencing delays in appointing a new chair. Jerome Powell’s term has only six weeks remaining, but the nomination of Kevin Warsh has stalled due to political investigations and controversies. The Trump administration has launched a criminal probe into Powell, leading to Warsh’s nomination being put on hold. If the nomination does not progress after Congress reconvenes in April, Powell may remain as chair or continue as a board member.

Cryptocurrency remains in consolidation, investors stay cautious

Bitcoin (BTC) is currently in a testing phase. Investors are watching closely. Although it briefly touched $76,000 last week, analysis suggests the rally was mainly driven by short covering rather than long-term demand. The crypto fear and greed index remains at 11, indicating extreme fear. Spot ETF inflows have dropped to the lowest point this month, and trading volume has also declined, reflecting a defensive stance by mainstream investors ahead of clarity on U.S.-Iran tensions.

This article on the escalation of the U.S.-Iran conflict, a 4% oil price increase, and soaring U.S. Treasury yields impacting U.S. stocks was first published by Chain News ABMedia.