U.S. military launches strikes on Iran; oil prices surge and U.S. Treasury prices fall

The U.S. military launched strikes on Iran, triggering an immediate reaction in the oil and bond markets. The event prompted investors to reassess energy supplies and the risks to safe shipping routes.

U.S. Central Command said it began the strikes on 7~ (local time), and subsequently announced on 8~ that a new round of attacks had been completed. According to the U.S. military, the military action was part of a response to matters including recent attacks on vessels.

In connection with the matter, the United States reimposed sanctions on Iranian oil over attacks on vessels and revoked the general licenses that had applied to Iranian oil sales. The successive announcements of sanctions and a military response were notable.

Reports have emerged that a vessel was attacked near the Strait of Hormuz, and the situation on the ground is developing rapidly. No official announcement has yet been made regarding the extent of the damage or casualties related to the vessel.

In market reaction, international oil prices rose immediately, while in the bond market, yields were observed to rise as bond prices fell. Volatility in energy and bond prices appeared simultaneously across exchanges and over-the-counter markets.

U.S. authorities and the military are monitoring the situation while signaling that further announcements are expected. The information announced so far can be summarized as military action, the reimposition of sanctions, and reports of a vessel being attacked.