Bonds & Stocks
The war in the Middle East has sparked turmoil in global markets, with oil prices surging and stocks and bonds experiencing losses. The S&P 500 fell 1.3%. The yield on 10-year Treasuries advanced three basis points to 4.16%.
Economy
Oil markets are set for chaos as the war in Iran causes major producers to curb output and the Strait of Hormuz remains closed. The United Arab Emirates and Kuwait have started reducing oil production, and others may follow as storage fills up and oil tankers avoid the Strait of Hormuz.
World
Iran chose Mojtaba Khamenei, the hardline son of the assassinated Ayatollah Ali Khamenei, as its new supreme leader, signaling Tehran won’t back down in a war now raging across the Middle East and causing a surge in energy prices.