US-Iran Tensions Fuel 5% Oil Price Surge, 19-Month High in US Treasury Yields

Tensions between the US and Iran escalated on Tuesday, pushing oil prices up 5% to $90.22 per barrel for WTI crude oil and 4.60% to $94.65 per barrel for Brent crude oil.

The US military struck targets within Iran belonging to the Revolutionary Guard, citing threats to commercial shipping and US military security in the Strait of Hormuz.

Iran responded by launching ballistic missiles at a US Marine Corps base in Aqaba, Jordan, claiming to have destroyed multiple facilities and caused US casualties.

The 10-year U.S. Treasury yield rose to approximately 4.80%, reaching a 19-month high as Federal Reserve Governor Barr reiterated that decisive rate hikes should be implemented if inflation does not cool sufficiently.