Brent crude traded at $106.83 a barrel on Thursday afternoon, up 5.6% on the day, its highest level since May 19, after U.S. forces destroyed five Iranian tankers in the Gulf. Treasury yields climbed to multi-year highs the same day, and traders raised the odds of a Federal Reserve rate increase next week to 64% after August producer prices came in hotter than expected.
Brent has risen 11.7% since Sept. 2, when it settled at $95.63, as U.S. Central Command reported a second round of strikes on Iranian oil tankers this week. The rally sits underneath a sharp move in bond yields and a shift in rate expectations that hit equities, gold and crypto on Thursday.
Five Tankers Struck In The Gulf
U.S. Central Command said its forces destroyed five Iranian crude oil carriers on Sept. 8, after the Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles twice over the preceding two days. The release names the M/T Kaviz, M/T Charminar, M/T Horizon 1, M/T Riesco and M/T Derya, placing four strikes in the Gulf of Oman and one near Kharg Island. Crews were directed to abandon ship before the vessels were hit, and the release does not mention the Strait of Hormuz. A separate release on Sept. 5 describes three earlier tanker strikes.
The U.S. Maritime Administration published advisory 2026-011 on Sept. 9, stating that Iran continues to threaten and conduct strikes on commercial vessels transiting the Persian Gulf, Strait of Hormuz and Gulf of Oman. The advisory replaced one that expired the same day, making it a scheduled six-month renewal rather than a response to this week's strikes.
Inventory Data Still Predates The Strikes
The Energy Information Administration's Weekly Petroleum Status Report for the week ending Sept. 4 was due to publish at noon ET Thursday, delayed a day by the Sept. 7 federal holiday. The most recent report, covering the week ending Aug. 28, recorded commercial crude inventories down 4.5 million barrels to 424.5 million. It predates both sets of tanker strikes.
The Rally Moves Rates And Risk Assets
The Bureau of Labor Statistics reported that producer prices for final demand rose 0.4% in August, and traders raised the odds of a September rate hike to 64% on the day. The 10-year Treasury yield reached 4.92% Thursday, its highest since Oct. 25, 2023, while the 30-year reached 5.34%, above every daily close of the past five years.
Equities and gold moved with it: the S&P 500 traded at 7,606, down 0.4% from Wednesday's close, and gold fell 1.3% to $4,405 an ounce. Bitcoin traded at $77,120, down 2.1% on the day, as the broader crypto market sold off alongside the move in yields.
Source: The Defiant
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