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Brent tops $94 and WTI clears $87 as sanctions risks lift yields

Global yields pushed the US 10-year toward 4.7% and the 30-year toward 5.2%, yet the dollar stayed broadly flat.

Reported · Written up by our desk · Major Pairs

Brent crude moved above $94 and WTI pushed through $87, extending both benchmarks to their highest levels since late July as markets priced a higher risk of prolonged Middle East supply disruption.

HousingWire? No, according to Action Forex, the move is tied to US President Donald Trump’s Wednesday threat of major economic consequences for countries and entities that help Iran evade sanctions, including channels used to circumvent sanctions such as oil smuggling, swap lines, cash transfers and exchange houses.

Action Forex reports that the oil rally is spilling back into bond markets, with yields rising across the US and abroad as the US 10-year rebounded toward 4.70% and the 30-year toward 5.24%, clawing back much of the decline seen after Wednesday’s Treasury-buyback.

Despite the sharp rise in yields, the dollar index (DXY) was broadly flat, with the focus on whether yields keep recovering while DXY remains below 100.08, versus a renewed pattern in which DXY breaks lower and yields subsequently ease.

Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|Dollar index 99.64 ▼0.3%

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