Surging Fuel Prices and 19-Year Treasury Yield Highs Weigh on Markets Amid Mideast Conflict

U.S. retail fuel prices surged in September, with diesel jumping 14.5% to $6.414 a gallon and gasoline rising 8.7% to $4.433, driven by ongoing geopolitical disruptions from the seven-month conflict involving the U.S., Israel, and Iran.
Crude benchmarks extended quarterly gains, with light sweet crude settling at $90.53 per barrel and Brent hitting $98.03, though Wall Street analysts project a potential pullback to average around $82 to $85 in the fourth quarter as non-Iranian supply finds alternative routes.
The energy squeeze coincided with broader economic pressures as the 10-year U.S. Treasury yield climbed to 5.29%, marking its highest level since May 2002 and triggering a broad slump across S&P 500 sectors ahead of the upcoming midterm elections.