The market anticipates the Fed to hike interest rates soon, with Brent crude futures surging to $100 per barrel and the 10-year US Treasury yield hitting a new yearly high.

BlockBeats News, July 23rd, according to Bitget market data, Brent crude oil futures surged to $100 per barrel for the first time since the end of May. The threat of escalated conflict in Iran has pushed up oil prices, with the U.S. Treasury bond yield rising to its highest level of the year, leading the market to expect the Fed to potentially raise interest rates as early as next week.

The two-year Treasury bond yield, which is heavily influenced by Fed policy expectations, rose by about 4 basis points on Thursday to around 4.34%, reaching its highest level since early 2025. The ten-year bond yield hit a new high for the year, reaching 4.712%. The thirty-year yield rose to 5.19%, slightly below the highest level since 2007.

With the Houthi rebels claiming to have attacked a commercial vessel for the first time in several months, the price of Brent crude oil is slowly recovering to $100 per barrel. This rise continues to put pressure on the U.S. Treasury bond market and is making traders more likely to believe that the Fed under Powell will raise interest rates quickly later this year.