Stocks Fall, Oil Rises on Hormuz Tension Flare-Up: Markets Wrap

A rally in oil drove both stocks and bonds lower on concerns that an escalation of hostilities over the Strait of Hormuz will keep energy costs elevated, fueling global inflation risks.

Equities dropped from all-time highs as Brent crude jumped about 6%, topping $114. The US and Iran exchanged fire in the Persian Gulf amid a flare-up of violence that also drew in the United Arab Emirates. With oil prices not far from a four-year peak, the decline in Treasuries sent 30-year yields above 5%.