Oil prices are extending their climb this morning as hopes for a deal to reopen the Strait of Hormuz dimmed, reigniting inflation fears.

President Trump responded yesterday with new demands for Iran, writing on social media that the country should pay compensation for people who have been killed in conflict and protests.

That's pushing Brent crude futures up to nearly $90 a barrel. Government bond yields in the U.S. and Europe are also rising, driven by investor concerns that higher energy prices could reignite inflation. The 10-year Treasury yield topped 4.7% and is rising toward the 2026 high it reached last month.

Meanwhile, U.S. stock futures are hugging the flatline following yesterday's small losses for major indexes. The summer doldrums are upon us-U.S. trading volume dropped to one of its lowest levels of the year yesterday-as vacationing Wall Streeters and cautious traders hold off ahead of tomorrow's July inflation report.