The war in Iran intensified U.S. inflation pressures as oil prices fluctuated around $100 a barrel, gasoline reached nearly $4.50 per gallon nationally and diesel topped $6.50, raising the prospect of higher transportation and grocery costs. Bond yields climbed to their highest level in more than two decades, pushing 30-year mortgage rates above 7%; the average rate reached 7.49% Friday, up 30 basis points during the week and at its highest since January 2025, according to Mortgage News Daily. Investors increasingly believed the Federal Reserve could raise interest rates as soon as next month. President Trump continued portraying the economy as strong, citing investment, construction and enthusiasm around artificial intelligence, while telling the United Nations that Iran might still face an escalation of the war, now in its seventh month. The market turbulence came with just over a month before the 2026 midterm election. The MAG7 Index and Nasdaq100 each gained more than 3% during the week as the Services PMI reached its strongest reading since October 2021.