U.S. markets turned cautious as escalating Middle East hostilities lifted Brent crude toward $100 a barrel and pushed investors toward the Japanese yen. Brent is up around 35% from this summer’s lows, while the dollar fell below 153 yen as the currency reached a seven-month high ahead of an expected Bank of Japan rate increase. The 10-year Treasury yield moved toward 5%, but rising borrowing costs appear consistent with sticky inflation, strong nominal growth and elevated federal debt rather than evidence of a disorderly bond-market break. Equities declined broadly, with the S&P 500 down 0.6% and the Dow off 1.2%. Markets also absorbed attacks in southern Saudi Arabia, new Canadian tariffs on U.S. goods and expectations for upcoming inflation, trade and Treasury-auction data.