GLOBAL STOCKS END TOUGH WEEK AS OIL AND LONG YIELDS STAY HIGH

Developing story: Stock indexes, Treasury yields, oil prices, the dollar and safe-haven assets may change as markets reopen.

Global stocks closed out a difficult week as high oil prices, rising long-term bond yields and unresolved U.S.-Iran tensions kept pressure on risk assets. Reuters reported that MSCI’s world stock index was headed for a mostly lower week while the STOXX 600 was set for its biggest weekly fall since early July.

The bond market remained the center of stress. U.S. long yields resumed their climb after the Treasury Department’s surprise expansion of buybacks produced only brief relief. Reuters reported that the 30-year Treasury yield traded above 5.2 percent, keeping attention on whether markets will force higher borrowing costs despite official attempts to support liquidity.

Oil added a second source of pressure. Brent crude traded around $94 a barrel and was up more than 5 percent for the week as the U.S.-Iran conflict kept the Strait of Hormuz far below normal traffic. Higher oil threatens to revive inflation at the same time governments and companies face heavier borrowing costs.

The dollar weakened for the week as investors debated whether Treasury efforts to contain long yields could shift the pressure into the currency. Gold touched its highest level in almost three months, and bitcoin surged, reflecting renewed interest in alternatives when investors question the stability of bonds and currencies.

Technology shares remain a major test. The AI trade has helped drive stock indexes to records, but higher yields challenge valuations and raise financing costs for data centers, chips and power infrastructure. Nvidia’s upcoming earnings will now be read as a broader signal on whether the AI buildout can keep supporting markets.

The market story is therefore not one risk but several working together. War-risk oil, debt-market stress, dollar weakness and AI uncertainty are all connected through inflation and financing conditions. If any one of them worsens, the others can become harder for policymakers and investors to manage.

What is confirmed is that stocks ended the week under pressure while oil and long yields stayed elevated. What remains unresolved is whether the next trading week stabilizes around Nvidia earnings and Jackson Hole or whether Iran sanctions, bond selling and energy prices drive another round of market repricing.

Fact-check date: August 22, 2026. Article type: News. Sources: Reuters; U.S. Department of the Treasury; Federal Reserve. Developing note: Stock indexes, Treasury yields, oil prices, the dollar and safe-haven assets may change as markets reopen.