Oil prices initially surged on Middle East tensions as Brent briefly topped $100 and WTI traded near the upper $80s to $90s, with renewed risk to routes like the Strait of Hormuz and Bab el-Mandeb. The escalation pushed Treasury yields higher, with the 10-year near 4.65%–4.7%, fueling concerns about higher-for-longer inflation and a possible Fed rate hike by late July. The inflation outlook remains mixed, with June CPI softening but May PCE running above target, complicating the path for rate cuts. Markets rotated in and out of risk assets, with Bitcoin around $64,000 amid the yield-and-oil risk environment. The renewed focus on energy supply, along with vessel attacks in the Red Sea and ongoing US-Iran tensions, underscores persistent geopolitical risk to global oil flows and prices. A limited ability to release oil from the SPR persists due to historically low stockpiles.