Middle East Tensions Fuel US Treasury Yield Surge

US Treasury yields surged amid fresh tensions in the Middle East and economic worries. The situation led to higher oil prices for the third consecutive session, with US crude and Brent oil seeing moderate gains.

Hopes for a US-Iran peace deal faded, contributing to the surge in oil prices. Despite this, financial markets were rattled by concerns over inflation, which could accelerate Federal Reserve rate hike plans.

Long-term Treasury yields nearly reached their highest levels since 2007, mirroring trends in Japanese government bond yields. Analysts fear that this could drive Japanese investors toward domestic bonds, further pressuring US yields upward.