US equities opened the trading week under pressure on September 28, 2026, as renewed tensions between Washington and Tehran sent oil prices sharply higher and pushed Treasury yields to their highest level since 2007. The S&P 500 lost 0.77% to close at 7,683.69, the Dow Jones Industrial Average fell 347.11 points, or 0.67%, to 51,481.51, and the Nasdaq Composite dropped 0.92% to 26,820.38. Boeing was among the session's biggest decliners after a fresh setback in its 737 MAX 10 certification process, compounding the risk-off tone across equity, currency, and commodity markets.

Iran Tensions Reignite Oil Rally

Crude oil surged after President Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, telling reporters that Tehran had overplayed its hand. Brent crude rose 2.46% to settle near $106.89 a barrel after touching an intraday high above $108, while US West Texas Intermediate futures settled around $92.60 after peaking near $96.54. The waterway, which carried roughly a fifth of the world's crude oil and liquefied natural gas before the conflict, remained effectively closed to tanker traffic. The episode underscored how directly Middle East risk was feeding into US rate expectations, adding fresh uncertainty to energy markets already strained by months of regional conflict.

Treasury Yields Hit Multi-Decade High

The 10-year Treasury yield climbed to 5.21%, up five basis points from Friday's close and its highest level since mid-2007, as higher energy costs revived inflation concerns across the market. Investors increasingly priced in the possibility of a further rate increase from the Federal Reserve under Chair Kevin Warsh, who has signalled a readiness to act if price pressures broaden beyond energy. The US Dollar Index firmed roughly 0.2% on the day, supported by the higher-yield backdrop and safe-haven flows. Rate-sensitive sectors, including technology and housing-linked stocks, underperformed as borrowing costs rose sharply across the curve, extending a selloff in longer-dated bonds that had been building since late last week.

Boeing Drags on Dow After FAA Delay

Boeing shares fell nearly 7% after the Federal Aviation Administration confirmed it would delay certification of the 737 MAX 10, the largest variant of the MAX family. The agency cited a software issue in the flight management computer's vertical navigation function, which can misbehave during a missed approach when a pilot alters the programmed flight path. The setback came days after chief executive Kelly Ortberg said, on September 16, that MAX 10 flight testing had been completed and the programme had entered its final documentation phase. Boeing has pinned much of its turnaround on ramping up MAX production, making the decline the largest single drag on the Dow.

Gold Slides as Inflation Fears Return

Precious metals opened the week sharply lower as the jump in yields and the firmer dollar curbed demand for traditional havens. Gold fell 3.79% to around $4,122.66 an ounce, a seven-week low, while silver dropped below $62 an ounce in the same session. Attention now turns to a data-heavy week, with the personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, due alongside Friday's September employment report. Both releases are expected to shape market expectations for the central bank's next policy move under Warsh's leadership as the Iran-driven oil shock complicates the inflation outlook.

Daily market analysis by BCM Markets.