US-Iran Tensions Reignite, Prompting Treasury bonds Fall

Renewed US-Iran tensions have dampened optimism about de-escalation in the Middle East, as investors grew cautious. Treasury bond prices fell amid concerns about rising oil prices fueling inflation, while the dollar saw a slight increase after a three-week decline. The Strait of Hormuz’s potential disruption has heightened market volatility, and the prospects for US-Iran negotiations remain uncertain.