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Oil above $100 and higher yields pressure risk assets as Trump vows to wait

Brent rose to $101.6, WTI hit $96.7, and the commentary pointed to weaker equities alongside rising Treasury yields ahead of the midterms.

Reported · Written up by our desk · Major Pairs

A global FX and markets wrap from Forexlive highlighted how oil strength and higher US yields weighed on risk sentiment, with investors focused on commentary suggesting geopolitical risk tied to Iran will persist into the US midterms.

Brent crude moved back above the psychologically important $100 level, trading around $101.6, up about 3.8%. WTI crude also rose, around $96.7, up about 3.9%, as Forexlive noted that gasoline prices had climbed above $4 over the Labor Day weekend.

Forexlive said President Trump indicated oil prices would likely not drop until after the midterms and that gasoline could eventually fall below $2 per gallon. The piece framed higher oil for longer as a near term inflation concern, with knock on effects for transportation, shipping, manufacturing, and agricultural costs.

The wrap added that higher oil and rising yields helped pressure major US stock indices, and it flagged that US Treasuries were in focus as the government announced a $6 billion buyback of 10 year notes, with yields moving higher during the session.

Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%|Gasoline (RBOB) $3.062 ▼5.8%

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