The 10-year U.S. Treasury yield topped 5% Monday for the first time since 2023, as the price of oil surged and the nationwide average for diesel fuel prices hit a new all-time high.
asserted
average → top → high
Those price movements came after Saudi Arabia shut a critical pipeline and talks about the future of the Strait of Hormuz were postponed.
asserted
talks → come → Hormuz
The international oil benchmark, Brent crude, surged to more than $109, while U.S. crude oil nearly hit $105 per barrel.
asserted
oil → surge → barrel
The East-West Pipeline, a key route for energy supplies, became even more critical due to the ongoing stalemate in the Strait of Hormuz, where vessel traffic has barely reached double digits in recent days.
asserted
traffic → become → days
U.S. Energy Secretary Chris Wright said Monday that he did not have an exact time frame for when the pipeline may restart but he was in contact with his Saudi counterpart and believed it would be “very soon.”
uncertain
it → say → counterpart
“I might have more of a time frame tomorrow,” he told Bloomberg Television.
uncertain
he → have → Television
“They’ve been very carefully assessing what the damage was, what needs to be done, and and I think more clarity on that will come out very soon.”
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clarity → assess → that
On Friday, the Saudi Energy Ministry said the pipeline was shut down “as a precautionary measure.”
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pipeline → say → measure
It did not say when the pipeline would be operational again.
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pipeline → say → ?
The attacks came as the Iran-backed Houthi rebels in Yemen made sweeping gains that tightened their grip on Bab el Mandeb, another critical waterway.
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that → come → Mandeb
“Uncertainty about the duration of the closure is a key point of focus now in terms of knock-on consequences for global supply and energy prices,” analysts at Lloyd’s Bank said.
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analysts → knock → Bank
Adding to investors’ worries, a meeting between Iran and Gulf countries regarding Hormuz was postponed Sunday afternoon.
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meeting → add → Hormuz
That meeting, set for Monday, was delayed “in the interests of consensus,” the Omani foreign minister wrote on X.
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minister → set → consensus
Tehran said the meeting was postponed at the request of Riyadh.
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meeting → say → Riyadh
On Monday, the Saudi state-run news agency said that Crown Prince Mohammed bin Salman met with U.S. Central Command Adm. Brad Cooper in Jeddah.
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Salman → say → Jeddah
Traffic through Hormuz remain at just a fraction of pre-Iran war levels.
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Traffic → remain → levels
On Sunday, just 14 vessels passed through the strait, and that number was only 12 Saturday, 11 Friday, and nine Thursday, according to data from MarineTraffic.
uncertain
number → pass → MarineTraffic
With crude oil prices rising as a result of those disruptions, so are gasoline prices.
asserted
prices → rise → disruptions
On Monday, the national average price of unleaded regular gas rose to $4.31 per gallon, according to motor club AAA.
uncertain
price → rise → AAA
The national average price of regular gas has risen more than 45% since the U.S. and Israel launched the Iran war.
asserted
U.S. → rise → war
The price of U.S. crude oil has soared more than 50% since the war started Feb. 28.
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war → soar → oil
Since the start of the year, oil prices have risen more than 80%.
asserted
prices → rise → year
On top of that, the price of diesel fuel continues to set new all-time highs.
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price → continue → highs
The national average price of diesel rose to $6.23 per gallon Monday, AAA also reported.
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AAA → rise → gallon
That commercial fuel, which is used in everything from trucking to boat transportation to trains, has become a particular focus for economists who say it could cause almost “everything” to cost more.
uncertain
everything → use → more
One of the primary drivers of the higher Treasury yields are fears about the inflation those higher prices may trigger.
uncertain
prices → trigger → inflation
The Fed is widely expected to hike interest rates Wednesday for the first time since 2023.
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Fed → expect → 2023
Longer-term bond yields, such as the 30-year Treasury bonds, rose to more than 5.37% on Monday, continuing to push to its highest levels since 2007.
“
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yields → rise → 2007
The cost of diesel gets into just about everything,” KPMG chief economist Diane Swonk said in a recent interview with NBC News.
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Swonk → get → News
“From running a farm ... [to the] cost of food, but also everything across the economy that’s shipped,” she said.
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she → run → economy
When diesel prices rise, everything “gets that extra fee tacked onto it.”
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fee → rise → it
Swonk predicted that the high cost of diesel will be an “inflationary problem” for months to come.
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cost → predict → months
On Sunday, President Donald Trump sought to act on the issue by urging Ukraine to halt attacks on Russian energy targets.
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Trump → seek → targets
Speaking to reporters during an appearance at the Irish Open in Doonberg, Ireland, Trump said he recently spoke with Ukrainian President Volodymyr Zelenskyy and asked him to stop targeting Russia’s oil refining infrastructure, particularly due to what is happening with the soaring price of diesel fuel.
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what → speak → fuel
“Mr. Zelenskyy has to do one thing,” Trump said, “he has to stop knocking out diesel fuel in Russia.”
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he → have → Russia
“Let him go after targets, but not diesel fuel, because he’s causing a shortage of diesel fuel,” the president continued.
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president → let → fuel
“Don’t hit diesel fuel because that’s hurting the world.”
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that → hit → world
“The growing scale and intensity of Ukrainian attacks on Russian refineries this year have pushed Moscow to ban diesel exports,” ING commodities analysts noted Monday.
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analysts → grow → exports
“This has only tightened global markets, following Persian Gulf disruptions.”
asserted
This → tighten → disruptions
Russia’s ban on diesel exports is set to expire at the end of September, but “clearly, there is the potential for further extensions,” ING’s team said.
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team → set → extensions
…and 2 more, not listed.
The Aporia
