Oil prices surged Wednesday with Brent crude rising 4.9% to $95 per barrel and U.S. crude jumping 5.1% to nearly $89 per barrel. Both pulled back slightly by afternoon, closing at $94.07 and $86.83 respectively. The national average gas price rose to $4.06 per gallon.

Treasury yields spiked with the 10-year yield hitting 4.65% and 30-year mortgage rates reaching 6.75%. Oil has gained 25% this month and over 50% year-to-date, erasing declines from the June U.S.-Iran memorandum. President Donald Trump declared that deal "over" on July 8 and threatened to bomb Iranian infrastructure if Iran attacks ships in the Strait of Hormuz.

Secretary of State Marco Rubio said the U.S. remains open to diplomacy but Iran doesn't appear serious. Meanwhile, Houthi attacks in the Red Sea and an Iranian-reported ship fire near the Strait of Hormuz have disrupted two key trade routes. Ship traffic through the Strait plummeted to just 13 vessels Monday and nine Tuesday.