This content was published on
July 9, 2026 - 05:48
4 minutes
(Bloomberg) — Oil climbed and government bonds fell after the US and Iran launched a fresh round of attacks, escalating tensions in the Middle East.Brent crude climbed 1% to $78.80 a barrel, on track for a third consecutive day of gains, as the US military completed an additional round of strikes against Iran. Asian shares pared their earlier advance to gain 0.1% as a rally in chip stocks lost momentum.Government bonds in Japan, Australia and New Zealand fell, extending losses from a global bond selloff Wednesday as traders increased bets the Federal Reserve will raise interest rates. Treasuries were little changed, after yields on the policy-sensitive two-year note approached their 2026 high.Non-yielding gold extended its losses to a fourth day, trading around $4,060 an ounce, as higher rates weaken the appeal of the metal.The flare-up in Middle East tensions and surge in oil prices have reignited inflation concerns, prompting money markets on Wednesday to bring forward bets on the next Fed rate increase to October from December. That has added to pressure on markets already grappling with elevated stock valuations after this year’s rally in artificial intelligence shares.““Chaos trade is back on the table, with oil, gold and safe havens suddenly pulled back into focus,” said Hebe Chen, a market analyst at Vantage Global Prime. “The immediate message is clear.”Investors are also focused on the bond market after Wednesday’s slump and after a few Fed officials in their most recent policy meeting said there was a case for raising rates. Minutes of their June gathering reflected growing concern over inflation just as worries over the labor market slightly receded.Meanwhile, veteran strategist Ed Yardeni said the rupture in the ceasefire between the US and Iran risks sparking a fresh acceleration in price growth, which in turn could compel the Fed to raise rates.The additional strikes were launched “to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz,” the US Central Command said in a social media post.Corporate Highlights:China plans to allow top artificial intelligence companies to buy a limited amount of H200 chips from Nvidia Corp., a sign the country is easing restrictions on the coveted US technology, according to the Information. Shanghai Iluvatar CoreX Semiconductor Co. raised about $902 million from a share sale in Hong Kong after its stock soared since an initial public offering in January. Chinese artificial-intelligence model maker Zhipu priced a $4 billion share sale at the low end of the marketed range. Some of the main moves in markets:StocksS&P 500 futures rose 0.1% as of 12:47 p.m. Tokyo time Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 fell 0.6% Hong Kong’s Hang Seng fell 0.8% The Shanghai Composite fell 0.5% Euro Stoxx 50 futures rose 0.9% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1427 The Japanese yen was little changed at 162.45 per dollar The offshore yuan was little changed at 6.8017 per dollar CryptocurrenciesBitcoin fell 0.3% to $61,860.36 Ether fell 0.4% to $1,727.54 BondsThe yield on 10-year Treasuries was little changed at 4.58% Japan’s 10-year yield advanced 2.5 basis points to 2.890% Australia’s 10-year yield advanced two basis points to 4.90% CommoditiesWest Texas Intermediate crude rose 1.1% to $74.33 a barrel Spot gold fell 0.4% to $4,061.88 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Stephen Kirkland, Momoka Yokoyama, Bing Hong Lok and Abhishek Vishnoi.©2026 Bloomberg L.P.
