Oil Climbs Above $105 as Bond Markets Face Renewed Selling Pressure

Oil prices climbed above $105 a barrel on Thursday as renewed attacks on shipping in the Gulf and concerns about possible supply disruptions added to pressure on global financial markets.

Brent crude, the international benchmark, rose about 5% to $105.54 a barrel in Thursday trading, according to the Associated Press. Reuters reported Brent at $105 a barrel during the day, its highest level since September 29. Prices have been volatile amid uncertainty over the Iran war and the outlook for energy shipments through the Strait of Hormuz.

Higher oil prices can raise transport and production costs and increase pressure on inflation. Investors may then expect central banks to keep interest rates high—or raise them further—making government and corporate borrowing more expensive. Market reporting linked Thursday’s bond pressure to those inflation concerns, but also to government debt levels and expectations of large new borrowing by technology companies.

In the United States, the yield on the 10-year Treasury note briefly reached 5.35%, its highest level since 2002, before moving back down. Yields rise when bond prices fall, and higher yields can feed into borrowing costs for governments, businesses and households. Reuters said the benchmark Treasury yield remained close to its recent 24-year peak.

The pressure was also visible in the United Kingdom. Reuters reported that the UK 10-year government bond yield reached 5.527%, its highest since July 2007, while 20- and 30-year gilt yields touched levels last seen in 1998. The report tied the move to the global bond sell-off, rising oil prices, Gulf shipping attacks and concerns that a hurricane could disrupt U.S. oil production.

The market moves are not driven by oil alone. Reuters also cited concerns over public borrowing and plans by major technology firms to raise substantial sums for artificial-intelligence investment. Together, these pressures have unsettled investors and weighed on shares in several markets.

For households and businesses, sustained increases in energy prices and borrowing costs could make fuel, transport, credit and investment more expensive. However, Thursday’s prices and yields reflect market movements at the time of reporting and may change as new information emerges.