Finance

U.S. crude oil prices rose more than 3% to settle above $102 per barrel following news of Houthi rebels entering the war in Iran. The benchmark Brent crude also saw significant volatility, trading as high as $116 per barrel earlier in the day due to concerns over supply disruptions in the Strait of Hormuz. These rising energy costs are heightening inflation fears and complicating the outlook for Federal Reserve monetary policy.

The yield on the 10-year Treasury note eased to approximately 4.34% on Monday, pulling back from an eight-month high of 4.48% reached late last week. This decline followed comments from Federal Reserve Chair Jerome Powell, who suggested that long-term inflation expectations remain well-anchored despite short-term energy price shocks. The shift in yields reflects a market balancing act between inflationary pressures and concerns over potential slowing economic growth.

Bitcoin and Ethereum saw a modest recovery on Monday, with Bitcoin trading near $67,800 after dipping below $65,000 over the weekend. The digital asset market continues to trade with high correlation to geopolitical headlines, reacting to both threats against Iranian energy infrastructure and reports of diplomatic progress. Despite the daily bounce, broader sentiment remains conservative as investors trim exposure to volatile assets during the ongoing conflict.

The U.S. government reached a $1 billion settlement with TotalEnergies to abandon two major offshore wind projects, signaling a strategic pivot away from certain renewable initiatives. Despite these project cancellations, recent data shows that renewable sources provided over 25% of U.S. electrical generation in early 2026. This comes as residential electricity prices have increased by nearly 10% year-over-year, driven by rising natural gas costs and winter demand.

New forecasts for 2026 project a 4.4% growth in total U.S. retail sales, reaching an estimated $5.6 trillion. Industry analysts cite steady employment and larger tax refunds as primary drivers of consumer resilience, even as geopolitical uncertainty persists. Recent reports indicate that retail revenue for the first ten weeks of the year is already up 2% compared to the same period in 2025.