Iran conflict rattles U.S. markets as oil prices and debt climb

U.S. stocks suffered their steepest decline in three weeks Thursday as President Donald Trump threatened expanded economic sanctions against Iran. Oil prices rose amid the continued closure of the Strait of Hormuz, a key route for global energy shipments.

The Dow Jones Industrial Average fell 1.32%, while the S&P 500 declined 0.87%. Brent crude topped $93 a barrel, and U.S. crude traded near $86.70. The Treasury also said total U.S. debt surpassed $40 trillion this week, as bond yields rose and an emergency increase in debt buybacks failed to calm markets.

Analysts said higher energy costs could add to inflation and pressure household budgets, while limiting the Federal Reserve’s ability to cut interest rates. The conflict has also unsettled global investors and raised concerns about demand for U.S. government debt.

Read the full story at aljazeera.com.