Oil Hits Three-Day Rally as Iran Conflict Widens, Asian Stocks Fall

Oil extended its rally for a third consecutive session on September 1, with Brent crude topping $96 a barrel after the United States and Iran exchanged fresh strikes. Crude had already climbed nearly 1% a day earlier on the same conflict. The dollar held firm as the Middle East fighting pushed energy prices higher, a move that traders often read as a safe-haven signal. Asian markets tumbled during the session as the combination of higher oil prices and rising bond yields spooked investors. Higher energy costs squeeze corporate margins and household spending, while higher yields make borrowing more expensive and pressure stock valuations, especially in growth-heavy Asian markets. The conflict has also spilled into U.S. politics: the Financial Times reported that Pentagon leadership faces disarray after Army Secretary Driscoll resigned amid a clash with Defense Secretary Hegseth, a departure described as leaving "serious leadership gaps" as the U.S. military manages the prolonged Iran conflict. It remains unresolved how long the fighting will last and whether oil's climb toward $100 will continue or reverse if a ceasefire emerges.