Wall Street slips as oil and Treasury yields stay elevated

Wall Street's main indexes fell on Monday, though they pared steeper losses as oil prices and Treasury yields retreated from intraday highs, with investors weighing uncertainty over the prospects for an Iran war peace deal and the Federal Reserve's rate path. Crude prices had jumped after US President Donald Trump rejected a peace deal from Iran but pared gains on expectations that Qatari mediators would hold talks with the two countries to find a possible deal. The rising prices of crude and diesel fuel have fanned inflation worries and pushed US Treasury yields higher, along with comments from Fed officials indicating that more rate hikes might be needed if price pressures fail to moderate after the central bank raised interest rates by 25 basis points earlier this month. Federal Reserve Governor Lisa Cook said on Monday she expects continued inflationary pressure in coming months stemming from AI-related demand and higher oil prices, though she stopped short of saying more interest rate hikes will be needed. Several key economic releases are due this week, which could help shape the path of Fed policy, including a reading on inflation and the labor market, culminating in Friday's government payrolls report.