The Main Points
- Escalating tensions in the Middle East and uncertainty over a deal to reopen the Strait of Hormuz drove Brent crude up to around $83 a barrel.
- Higher energy costs stoked concerns that the Federal Reserve may need to keep rates elevated for longer, pressuring both stocks and bonds.
- Gold rose to its highest level since late June, supported by weaker-than-expected payrolls data and the broader risk-off mood.
- The S&P 500 fell for a second straight session as investors weighed the geopolitical backdrop against a heavy slate of corporate earnings ahead of Friday's July jobs report.