Yields Rise While Metals Trade Mixed (05.13.2026)
Iran’s oil flows from Kharg Island, the country’s main export hub, appear to have stalled for several days for the first time since the conflict began, according to satellite imagery. With tanker movement through the Persian Gulf still restricted, storage facilities and offshore vessels are rapidly filling, increasing the likelihood that Tehran may need to cut production further if exports remain frozen.
Bond markets reacted quickly to the supply strain. Japan’s 10-year yield climbed close to 2.59%, reaching its highest level since 1997, as traders leaned further into expectations of a Bank of Japan rate increase driven by oil-related inflation pressure. In the United States, the 10-year Treasury yield moved toward 4.46% after stronger inflation figures weakened the case for near-term Fed easing.
The dollar also regained strength, holding above 98 after April inflation accelerated to 3.8%, with higher fuel costs playing a major role. Focus now shifts to upcoming producer price data for a clearer read on whether inflation pressure is broadening.
Equity futures traded more cautiously after a mixed Wall Street session, where rising oil prices and renewed concern around the US–Iran conflict weighed on technology shares. Investors are now balancing strong corporate earnings against the growing possibility that borrowing costs may remain restrictive longer than previously expected.
Iran’s oil flows from Kharg Island, the country’s main export hub, appear to have stalled for several days for the first time since the conflict began, according to satellite imagery. With tanker movement through the Persian Gulf still restricted, storage facilities and offshore vessels are rapidly filling, increasing the likelihood that Tehran may need to cut production further if exports remain frozen.
Bond markets reacted quickly to the supply strain. Japan’s 10-year yield climbed close to 2.59%, reaching its highest level since 1997, as traders leaned further into expectations of a Bank of Japan rate increase driven by oil-related inflation pressure. In the United States, the 10-year Treasury yield moved toward 4.46% after stronger inflation figures weakened the case for near-term Fed easing.
The dollar also regained strength, holding above 98 after April inflation accelerated to 3.8%, with higher fuel costs playing a major role. Focus now shifts to upcoming producer price data for a clearer read on whether inflation pressure is broadening.
Equity futures traded more cautiously after a mixed Wall Street session, where rising oil prices and renewed concern around the US–Iran conflict weighed on technology shares. Investors are now balancing strong corporate earnings against the growing possibility that borrowing costs may remain restrictive longer than previously expected.
- The euro softened toward $1.17 as investors weighed escalating U.S.–Iran friction against the likelihood of more ECB rate hikes.
- The Japanese yen slipped toward 158 per dollar as strong U.S. inflation data strengthened the dollar and solidified expectations for a restrictive Federal Reserve.
- The British pound dipped to $1.354, retreating from recent two-month peaks as a severe leadership crisis and U.S.–Iran friction dampened sentiment.
- The offshore yuan held near 6.79 per dollar for a second straight session, staying close to its strongest level since February 2023.
- Gold dropped below $4,700 as strong U.S. inflation data lowered hopes for immediate Federal Reserve rate cuts.
- Silver climbed past $87 per ounce, marking a two-month peak as high demand from the electronics and renewable energy sectors fueled a rally.
- Brent crude slipped below $107 per barrel, ending a three-session advance even as supply risks around the Strait of Hormuz remained unresolved.
- The Nasdaq 100 traded near 29,065, falling roughly 0.87% after strong US inflation data.
- Bitcoin traded between $80,500 and $81,000, holding above the key $78,200 support zone after recent volatility.
Technical Outlook on Charts
Euro Eases Toward 1.17
Gold Weakens as Yields Rise
Yen Weakens Toward 158
Sterling Softens Amid Political Crisis
Silver Hits Two-Month High
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