U.S. stocks fell and Treasury yields hit multiyear highs after Yemeni rebels attacked Saudi Arabian energy facilities, pushing oil prices to their highest levels of the summer.

The Dow Jones Industrial Average fell 628.18 points, or 1.18%, to 52786.07. The S&P 500 lost 45.08 points, or 0.58%, to 7673.52 and the tech-heavy Nasdaq Composite slipped 85.58 points, or 0.32%, to 26421.41.

Oil futures rose $1.55, or 1.7%, to $93.03 a barrel, the highest settlement in New York since June 4. Brent futures, the globally traded contract, tested the psychologically significant $100-per-barrel level. Houthi rebel attacks in the Saudi cities of Jazan, Najran, Abha and Khamis Mushait had hit "civilian and economic facilities," according to a Saudi spokesman. In another sign of escalation in the Middle East war, more U.S. Navy ships were attacked on Monday, The Wall Street Journal reported.

The yield on the policy-sensitive two-year Treasury rose 0.017 percentage point to 4.396%, the highest close since January 2025. The yield on the 10-year Treasury rose 0.022 percentage point to 4.805%, an almost three-year high. The yield on the 30-year bond rose 0.018 percentage point to 5.264%, closing within 5 basis points of 19-year highs.

Treasury yields are hovering at 2026 highs ahead of critical inflation data later this week.

"The question is how much of the inflation is temporary and related to oil prices being artificially elevated by what's going on in Iran and how much is tied to structural strength in the general economy," said Eric Marshall, president of Dallas-based mutual-fund firm Hodges Capital.