US markets declined last week as surging oil prices, driven by escalation in the conflict with Iran, stoked inflation fears, pushed Treasury yields to multi-year highs, and weighed on asset prices. The S&P 500 fell 0.8% for the week, despite a partial recovery on Friday. Treasury yields rose meaningfully across the curve, with the 10-year nearing 5%, as persistent energy-driven inflation reinforced expectations of a Fed rate hike. August CPI coming in slightly above expectations further stoked market expectations for a hike at the September Fed meeting. Consumer sentiment deteriorated sharply, with the University of Michigan index recording its second-lowest reading, as higher gasoline prices and renewed trade tensions weigh on household confidence. In the alternatives space, US crude oil surged while gold slipped as rising real yields pressured the non-yielding metal.