Federal Reserve officials signaled interest rate increases at the Jackson Hole meeting, leading to sharp sell-offs in European technology stocks. ^[1] German 10-year bond yields reached their highest level in 15 years, which pressured real estate stocks and dragged the Stoxx Europe 600 Real Estate index to its lowest level since mid-July. ^[2] International financial markets began September with a tone of caution after a surge in oil prices and bond yields reignited concerns about inflation and interest rate paths. ^[3] Germany's DAX 40 index declined 1.17% to 26,258.11 points at the close. ^[4] Market operators increased their bets to nearly 60% probability of a Federal Reserve rate hike in September, up from 34% prior to Warsh's speech. ^[5] Oil prices surged with Brent crude rising 3.6% to exceed $91 per barrel and West Texas Intermediate gaining 3.7% to reach $86.51 per barrel. ^[6] The renewed price increase in oil complicates the interest rate landscape as investors digest restrictive inflation comments from Federal Reserve Chair Kevin Warsh at Jackson Hole. ^[7] Washington and Tehran exchanged attacks for the first time in nearly a month after the US Central Command targeted rocket launchers preparing to deploy mines in the Strait of Hormuz. ^[8] Asian markets closed September 1 with mixed behavior, with the Nikkei 225 in Japan falling 0.15% and the Topix advancing 0.6%. ^[9] The escalation of oil prices constitutes a relevant element for markets because it can translate into higher transportation, production, and energy costs, subsequently exerting pressure on inflation. ^[10]