KATHMANDU: The U. S. stock market is under pressure on Monday as tensions between Iran and the United States escalate. Investors are worried that the impact on global oil supplies has increased after US President Donald Trump rejected Iran’s seven-day proposal to reopen the Strait of Hormuz.

Tensions have pushed up crude oil prices and the yield on U. S. government bonds has also risen significantly. The interest rate on U. S. 10-year government bonds has risen by seven basis points to 5.25%. This is the highest level since 2026 and the highest level since mid-2007.

Similarly, the interest rate on 30-year government bonds has reached around 5.6 percent. The interest rate on two-year bonds has also increased by more than five basis points to 4.916 percent.

Sharp fluctuations in the price of oil

Crude oil prices rose sharply in early trading on Monday after there was no consensus on the reopening of the Strait of Hormuz. Although the price later decreased, the price remained high.

West Texas Intermediate (WTI) crude oil traded at about $92.6 a barrel. At the same time, the price of Brent crude oil from the North Sea rose 0.92 percent to above $105.

The rise in oil prices has also raised fears that inflationary pressures in the US could increase further. Investors are cautious, saying that this could put pressure on the US central bank to tighten its interest rate policy further.

Markets expect the U. S. central bank to raise interest rates by another 0.25 percentage point at its Oct. 28 meeting, with a 70 percent chance of raising rates.

Shares of large companies fluctuate

Shares of big companies also had a different impact on the US stock market on Monday due to Iran-US tensions.

Nvidia’s share price rose 1.68 percent. Investor sentiment has been positive after the company’s board of directors approved an additional $150 billion of its share buyback program. With this, the company’s remaining share repurchase rights have reached $235 billion.

However, Boeing’s share price has fallen by about 7 percent. Investors are worried after the company revealed a software problem that could affect the landing process of the 737 Max plane.

Shares of Meta Platforms also fell about 4.8 percent. Shares of MongoDB also fell sharply after the company announced it would appoint the CEO of MongoDB to lead its new artificial intelligence campaign.

At the same time, Tesla’s share price fell about 4 percent after the launch of a new version of the Roadster was postponed.

SpaceX’s share price has also fallen by more than 2 percent. However, the company’s Starship rocket has managed to reach orbit for the first time during its 14th test flight.

Investors’ Eyes on Economic Statistics

Now investors’ attention is focused on the US economic data to be released this week. On Wednesday, the Personal Consumption Expenditures (PCE) price index for the month of August will be released. The PCE is seen as an important indicator to evaluate the state of US inflation.

After that, the employment report for the month of September will be released on Friday.

Investors are watching these data with particular interest, as inflation, jobs and changes in oil prices are likely to influence the central bank’s upcoming monetary policy and interest rate decisions.