Updated

U.S. oil prices, which had topped $105 a barrel after Saudi Arabia reportedly canceled crude cargoes following a pipeline closure and renewed Houthi strikes, pulled back after Saudi Arabia reportedly offered ship-to-ship crude transfers to ease supply concerns. The additional supply eased fears of a prolonged disruption, though diesel prices remain elevated and traders continue to watch the situation closely amid ongoing Middle East tensions. The oil-driven volatility also spilled into broader markets, with U.S. stocks falling as crude prices and Treasury bond yields both jumped in the same session. The combination of higher energy costs and rising yields added to investor unease heading into the Federal Reserve's rate decision, compounding existing worries about inflation and borrowing costs.