Oil Jumps Above $100 as Hormuz Disruption Rattles Stocks and Bonds

Oil prices climbed further above $100 a barrel on Monday, May 4, 2026, asourceser Iran took control of the Strait of Hormuz despite U.S. efforts to free up shipping. The renewed supply shock unsettled global markets, pushing U.S. Treasury yields higher and weighing on stocks as investors braced for stronger inflation.

Brent crude rose 5% and U.S. West Texas Intermediate (WTI) gained 3%. The move rippled into rates markets, with U.S. Treasury yields rising by about 6 basis points across the curve. The 2-year and 10-year yields hit their highest levels since late March, while the 30-year yield moved above 5% for the first time since July.

Equities fell broadly. Europe’s STOXX 600 declined 1%, and the Dow Jones Industrial Average was down 1%.

All 11 sectors in the S&P 500 fell except energy, reflecting the market’s sensitivity to higher fuel costs and the risk of slower growth.

Analysts cited in the report said U.S. inflation could move toward 4% in the coming months as the energy shock feeds through to prices, potentially pressuring consumer and business sentiment and keeping market volatility elevated.