West Texas Intermediate crude futures surged 5.1% to $106.53 a barrel Tuesday afternoon, the highest level since early May.

Saudi Arabia’s East-West pipeline remains shut, and Saudi Aramco has begun canceling or delaying crude deliveries to European refiners.

Energy Secretary Chris Wright told CNBC the restart “will be measured in days.” The move is bleeding straight into rates. The 10-year Treasury yield punched through 5% for the first time since July 2007 as the crude rally reloads the inflation trade, with markets pricing roughly a 92% chance the Federal Reserve hikes 25 basis points on Wednesday.

Energy equities are the only green on the board. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) rose 2.9%, the VanEck Oil Services ETF (NYSE:OIH) added 1.9% and the United States Oil Fund (NYSE:USO) tracked crude higher. WTI is now up more than 80% year-to-date.

Image: Shutterstock

Read Also: Oil Crisis Worsens, Diesel Hits Record High: Here's How to Trade It