Stocks slid and 30-year Treasury yields hit a post-financial crisis high, as a hot inflation print and a fresh rise in oil prices dragged market sentiment.

Brent crude oil hovered around $105 a barrel as hostilities between the U.S. and Iran continued to escalate, while producer-price index data showed prices rising in August, prompting investors to bump up their bets on the Federal Reserve raising its policy rate next week. Markets are now pricing a 69.6% chance probability of a quarter-point rate hike, according to LSEG.

Treasury yields rose to a spate of new multi-year highs as the commencement of Treasury Secretary Scott Bessent's repurchase program failed to soothe investors. Two-year Treasury yields edged higher to 4.535%, above Wednesday's two-year high. Ten-year yields tacked toward the 5% mark, rising to 4.927%, their highest level since November 2023. Yields on 30-year bonds rose to 5.352%--their highest level since June 2007.

In equity markets, the Nasdaq fell 0.9%. The Dow Jones Industrial Average dropped 0.6%, while the S&P 500 fell 0.7%. European stocks were also lower after a mixed session in Asia.

The dollar strengthened on the inflation data, while non-yielding assets including bitcoin and gold fell.

The oil price rise pushed energy stocks higher but miners sold-off. Miners are some of the largest consumers of diesel in the world and the higher prices will add to costs.

Miners were also hit by expectations of interest rate hikes which will weigh on investment and demand for metals and minerals. Copper also slumped from record highs. Freeport-McMoRan fell 9% in early morning trade and Teck Resources slid more than 8%. In afternoon trade in Europe, Anglo American and Antofagasta were around 6% lower.