Brent Crude Reaches $100 as Expectations of Fed Rate Hike Grow

Huo Xing Finance reports that on July 23, according to market data, Brent crude oil futures surged to $100 per barrel for the first time since late May. Rising oil prices, driven by escalating threats of conflict involving Iran, pushed U.S. Treasury yields to their highest levels this year, as markets anticipate the Federal Reserve could raise rates as soon as next week. The two-year Treasury yield, which is highly sensitive to Fed policy expectations, rose approximately 4 basis points on Thursday to around 4.34%, reaching its highest level since early 2025. The ten-year Treasury yield hit a yearly high of 4.712%, while the thirty-year yield climbed to 5.19%, slightly below its highest level since 2007. As the Houthi movement claimed to have attacked commercial vessels for the first time in several months, Brent crude prices are gradually rebounding toward $100 per barrel. This upward pressure continues to weigh on the U.S. Treasury market and is prompting traders to increasingly believe that the Fed under Powell will raise rates soon this year.