Oil tops $91, Treasury yields jump as US-Iran truce lapses
Why it matters: Investors are pricing in longer Strait of Hormuz disruption, lifting inflation fears and pressuring stocks and government bonds.
Oil prices rose for a third straight day and government bond yields hit multi-decade highs after a temporary US-Iran ceasefire expired without a broader deal. Brent crude traded above $91 a barrel, while US West Texas Intermediate climbed above $85, as traders bet the conflict could keep energy supplies tight. A vessel was struck by a projectile while leaving the Strait of Hormuz, and tanker traffic through the waterway remained severely reduced after recent attacks. US 30-year Treasury yields climbed above 5.33%, the highest since 2002, while the 10-year yield reached its highest level since 2007. Stocks in Asia and US futures fell as markets absorbed the risk of higher oil, stickier inflation and prolonged shipping disruption.