Brent Crude Surges to $105 as Fed Pause Maintains Tight Financial Conditions

The national average for a gallon of gasoline reached $3.86. This price increase follows a surge in Brent crude oil prices, which climbed nearly 6% to $105 per barrel. The Federal Reserve held interest rates steady, citing ongoing risks from the war in Iran and hotter-than-expected wholesale price inflation data. Bond yields rose in response to the persistent inflation pressures. The 10-year U.S. Treasury yield climbed nearly 6 basis points to 4.26%. Equity markets reacted to the tighter financial conditions. The Dow dropped nearly 800 points, or 1.6%, to its lowest level since November. The S&P 500 fell 1.4% and the Nasdaq lost 1.5%, marking the lowest levels for both indexes since November. The VIX Composite jumped nearly 10%.