U.S. gross national debt reached roughly $40.047 trillion on August 18, crossing the $40 trillion threshold for the first time, according to Treasury data. The milestone came about five months after debt passed $39 trillion in March 2026, as U.S. stocks retreated from record highs, long-term Treasury yields rose and fiscal concerns intensified. Oil prices climbed nearly 5% to around $87 per barrel as negotiations involving Iran stalled. Asian currencies were largely steady against the U.S. dollar at 0126 GMT, with concerns about U.S. debt sustainability providing support. CBA Global Economic & Markets Research said those concerns could weigh on the dollar this week, while Treasury Secretary Bessent raised expectations that a budget-consolidation program would be released. CBA said a modest consolidation could disappoint market participants and weaken the dollar. The dollar was little changed at 158.87 yen and flat at 1.2693 Singapore dollars, while the Australian dollar held steady at US$0.7168, according to LSEG data. About $32.26 trillion of the U.S. debt is held by the public, while $7.78 trillion consists of intragovernmental holdings through trust funds such as Social Security. The fiscal deficit through July stood at $1.8 trillion, up 4% from the same period last year, partly because court rulings reduced tariff revenue expected to narrow the shortfall. Annual net interest payments exceed $1 trillion, making them the federal government's second-largest expenditure after Social Security and larger than national defense, Medicaid or any individual discretionary program. The Congressional Budget Office projects the debt-to-GDP ratio will rise from 101% in 2026 to 120% by 2036 if current trends continue, while the $41.1 trillion statutory debt limit could be reached as early as 2027.