--- title: "Oil jumps 5.1%, and reported AI borrowing meets yields near a 24-year high" url: "https://etf.net/news/oil-jumps-5-1-and-reported-ai-borrowing-meets-yields-near-a-24-year-high-2026-10-08" published_at: "2026-10-08T11:33:24.479Z" updated_at: "2026-10-08T14:25:46.602Z" byline: "ETF.net Research" --- # Oil jumps 5.1%, and reported AI borrowing meets yields near a 24-year high Brent crude was up 5.1% at $105.32 a barrel on Thursday, October 8, while reported borrowing talks at Broadcom and SpaceX met 10-year Treasury yields at 5.3% By ETF.net Research. Published Oct 8, 2026. Brent crude was up **5.1%** Thursday morning; stocks were lower before the US market open, and long-term Treasury yields were still near a 24-year high after a $39 billion sale of 10-year notes. The international oil benchmark stood at $105.32 a barrel at 7:04 a.m. Eastern while West Texas Intermediate, the US benchmark, was at $92.71, an increase of 5.0% compared to Wednesday. According to Reuters' first dispatch, at 1:16 a.m. Greenwich time, Brent was up just 1.3% on attacks against shipping in the Persian Gulf and the Strait of Hormuz. Those attacks have increased in the eighth month of the US-Israeli conflict with Iran, and last week they were the heaviest of any week since the conflict began. Before the conflict, that route carried about a fifth of the world's oil and fuel. Producers had also stopped about a quarter of current oil output in the Gulf of Mexico, roughly 512,000 barrels a day, as of Wednesday, ahead of Hurricane Isaias. The season's first hurricane strengthened late Wednesday and is forecast to reach the northern Gulf Coast late Friday or early Saturday. Shell and Chevron had already cut offshore work. Jim Burkhard, global head of crude oil market research for S&P Global Energy, said the cuts are large enough to affect prices, though other hurricanes there have caused bigger ones. "I would characterize the oil market risk as moderate, but rising," he said. Axios reported late Wednesday that the Pentagon had told US Central Command, several days earlier, to finish preparations for a possible resumption of strikes on Iran. The report said the order set no date, and that President Trump has not made a final decision. ##AI borrowing boost Thursday morning also heralded reports of planned borrowing in the AI sector. According to the Wall Street Journal, major US software manufacturer Broadcom is arranging more than $50 billion to finance AI chips it is developing with OpenAI. Reuters, drawing on the Journal and other reports, said SpaceX was looking to issue $30 billion of investment-grade bonds and raise $10 billion in loans to buy chips from Nvidia. Reports of those talks describe them as early, and they could end with no deal. Bloomberg, citing people familiar, said Chinese internet giant Tencent is also considering an offshore bond sale of up to $5 billion. None of the companies has announced a deal, and none of the debt has been sold. Reuters reported that the cost of insuring SpaceX's debt against default jumped to a record, and that its bonds lost ground. Reuters also read the reports as extra competition with governments for the same lenders, and said the climb in borrowing costs had put stocks on the defensive. On Wednesday the 10-year Treasury yield touched 5.36%, its highest in 24 years, then eased. By Asian trading Thursday, it was back near 5.30%. TLT, a fund that holds long-term US government bonds, was down 0.8% from Wednesday's close before the open as higher yields suppressed prices. Chart: **TLT** has fallen toward $77 Wednesday also saw US Treasury sell $39 billion of 10-year government bonds at 5.3%. That yield was 1.7 basis points below where the notes were trading at the 1 p.m. deadline, so bidders paid a premium. Bids covered the notes 2.77 times, at the top of the range for that ratio. "The 24-year highs in rates brought out the buyers and resulted in a great auction," Peter Boockvar, market strategist and author of The Boock Report, told CNBC. US Federal Reserve Governor Christopher Waller, speaking at a Central Bank of Turkey forum in Istanbul, said the case for higher US interest rates had become clear with the economy strengthening. He added that an unresolved energy shock and the AI sector buildout were also putting pressure on inflation through demand for goods and services. "If economic data continues to come in as expected, I anticipate additional hikes to support a timelier return of inflation to our 2% goal," he said. "The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time." The Fed's target range for interest rates is already 3.75% to 4%, after a quarter-point increase in September. Weekly jobless claims, due at 8:30 a.m. Eastern, are the next check on that "if." Forecasters are looking for 200,000 new filings for unemployment benefits, after 197,000 the week before. Asia and Europe were lower. South Korea's flagship Kospi index fell 2.6% – the steepest drop among the country's major indices. Major S&P 500 trackerSPYwas down 0.6% from Wednesday's close before the US market open, after a 0.2% decline in the regular session. At 1 p.m. Eastern the Treasury sells **$22 billion** of 30-year bonds. That is the price of the morning: oil up 5.1%, reports of mammoth AI borrowing, and a central banker who says more rate increases are likely if the numbers keep coming in as expected. Source: etf.net, https://etf.net/news/oil-jumps-5-1-and-reported-ai-borrowing-meets-yields-near-a-24-year-high-2026-10-08. Please cite the page URL.