Traders returning from their August breaks face a broad set of market risks, led by the war with Iran, elevated government debt and persistent inflation. Oil rose 2% on Monday after the U.S. attacked an Iranian island in the Strait of Hormuz, while uncertainty over key waterways has driven swings in energy prices, supported energy stocks and pressured large energy users and government bonds. Investors are also focused on the Federal Reserve and Bank of Japan, which meet in the same week. Fed Chair Kevin Warsh's hawkish Jackson Hole speech may have strengthened expectations for a September 16 rate hike, while markets expect a BOJ hike on September 18 after Japan's intervention to strengthen the yen. Japan's 10-year yields are nearing 3%, their highest since the mid-1990s. Anthropic is likely to be the next mega-cap technology company to list publicly after the SpaceX IPO in June and reportedly aims to raise as much as $100 billion. Its May valuation was $965 billion, raising concerns that a highly valued listing could test enthusiasm for AI-related stocks, including Nvidia and Microsoft. France is preparing a draft budget for submission to the National Assembly, while Germany faces bond-market pressure as Chancellor Friedrich Merz confronts state elections and low popularity. In Britain, Prime Minister Andy Burnham and finance minister John Healey face tests at the September Labour Party Conference and October budget, with markets watching whether growth measures challenge fiscal rules. The November U.S. midterm elections could also influence policy, as average gasoline prices have risen above $4 a gallon from below $3 in January. Analysts say the Trump administration may be reluctant to tolerate higher long-term Treasury yields because mortgages are linked to the long end of the yield curve.