Bonds unsettled as oil and gas climb, earnings loom for AI

Brent crude surged above $90/barrel as US-Iran tensions escalated with continued military strikes and disruption at the Strait of Hormuz. Rising energy costs revived inflation fears, pushing US 10-year Treasury yields to 4.55% and 30-year yields above 5.0%, with futures now pricing in a Federal Reserve rate hike by year-end. Equity markets remained subdued, with the Philadelphia Semiconductor Index down 20% from its June peak, as investors brace for major tech earnings from Alphabet, Intel and Tesla.