Amazon Stock Plunges Amid Renewed Middle East Tensions and Rising Treasury Yields

Amazon shares fell over 2% on Tuesday as renewed tensions in the Middle East and rising Treasury yields rattled Wall Street. The decline came amid a broader retreat across major US stock indexes, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all trading lower.

The selling was sparked by overnight developments in the Strait of Hormuz, where two oil tankers were struck by projectiles on Monday night. This has led to renewed hostilities between the US and Iran, extending a six-month conflict that has largely settled into a stalemate.

Average yields on 10-year Treasury bonds climbed to 4.78% on Tuesday, their highest intraday level since January 2025, according to Yahoo Finance. This is stoking inflation concerns and reinforcing expectations of another possible Federal Reserve interest rate increase later this month.