Oil prices surge to $107 for the first time since May as bond yields jump
Stocks tumbled and mortgage rates moved higher, as economies around the world confront the prospect of long-term inflation.
Sept. 10, 2026, 10:01 AM EDT / Updated Sept. 10, 2026, 12:32 PM EDT
By Steve Kopack
The price of oil surged again Thursday, with Brent crude surpassing $107 per barrel for the first time since May and U.S. crude oil jumping above $100 per barrel, also its highest level since mid-May.
A primary driver of the move in oil prices was President Donald Trump’s comment Wednesday night that he is not looking for a deal with Iran. Trump also said that he did not expect oil prices to fall until “right after” the November midterm elections, despite having said for months that the war would be over quickly.
“Right after the election, oil prices are going to be tumbling downward,” Trump told reporters Wednesday afternoon. “They’re going to be tumbling down, and we’ll get them down.”
Commodities experts warned earlier this week that oil prices as measured by Brent could rise to $120 or even as high as $150 per barrel if the stalemate with Iran continues to drag on.
Trump’s suggestion that the war would continue for many more months also puts global crude oil stockpiles in focus. Earlier this year, dozens of nations agreed to release 400 million barrels in order to keep a lid on prices in the early months of the war.
The U.S. Strategic Petroleum Reserve is at its lowest level since the 1980s.
Additionally, Saudi Arabia informed OPEC that its crude oil output plunged to the lowest level since 1990 last month due to renewed hostilities with Iran, according to a report from Bloomberg News.
NBC News was not immediately able to confirm that report.
“The move reflects a market still pricing in persistent geopolitical risk, with Persian Gulf tensions showing no credible path to de‑escalation,” analysts at ING said Thursday.
As a result of those rising prices, the national average gas price rose another 5 cents overnight to $4.27. Diesel fuel, which powers everything from farms to trucking to trains, rose 3 cents overnight to $5.97.
Meanwhile, U.S. Treasury bonds continued to sell off, driving their yields higher. The 10-year Treasury yield, which heavily influences consumer borrowing rates, especially for mortgages, touched 4.93%, its highest level since 2023.
The average 30-year fixed mortgage rate rose to 7.07% Thursday, according to Mortgage News Daily. This is the highest rate since May 2025.
The 30-year Treasury yield spiked to 5.35%, its highest level since 2007.
The move in Treasury yields was driven mostly by the soaring price of energy, which has triggered renewed fears of an inflation crisis.
But rising yields may also be attributable to a pledge by Trump on Wednesday night to give a $5,000 “dividend” to all U.S. adults if Republicans retain the House and Senate in November. While details of the pledge remain unclear, it would cost more than $1 trillion and could add to the country’s already significant $40 trillion debt pile.
Rising yields and oil prices sent U.S. stocks tumbling. The S&P 500 fell 0.6%, the Nasdaq composite fell 0.7% and the Dow Jones Industrial Average fell 350 points.
On Thursday morning, the Bureau of Economic Analysis reported that wholesale business inflation rose 0.4% from June to July. On an annual basis, the producer price index rose 5.4% from a year ago. PPI is often viewed as an early warning signal for what may happen with consumer inflation, which will be released Friday.
Link:
https://www.nbcnews.com/business/energy/us-crude-oil-iran-trump-hormuz-rcna596997