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macroAug 11, 2026, 7:59 AM

Oil Rallies on Iran Tensions, Yields Rise Ahead of CPI

Oil prices surged on escalating Iran tensions, while Treasury yields and rate-hike expectations picked up ahead of the CPI release. U.S. stocks ended mixed, with the Dow, S&P 500, and Nasdaq slightly lower but the Equal Weight S&P 500 and mega-cap tech stocks inched higher.

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Oil prices surged on Monday, driven by renewed concerns over a potential standoff with Iran. The move came as Treasury yields rose and market-implied odds of another Federal Reserve rate hike rebounded ahead of the upcoming Consumer Price Index (CPI) report.

U.S. equities struggled for direction following Friday's record closes. The Dow Jones Industrial Average fell 61 points, the S&P 500 slipped 4 points, and the Nasdaq Composite dropped 85 points. The Russell 2000 and Dow Transports lost 17 and 140 points, respectively.

However, the equal-weight S&P 500 index added 3 points, and the "Magnificent Seven" mega-cap stocks collectively gained 10 points, providing a counterbalance to broader index weakness.

Source: FXStreet Forex News