Oil prices and Treasury yields rise after US airstrikes on Iran

The United States 7 month 7 day carried out a new military strike on Iran, and international oil prices rose immediately as news emerged alongside the announcement that crude oil sanctions would be reimposed and Iran-related general licenses canceled. Related reports followed one after another over the two days, from 7 month 7 day through the early hours of 7 month 8 day.

The United States announced that it had reimposed crude oil sanctions on the grounds of a maritime attack. At the same time, it canceled general licenses that had allowed some oil transactions with Iran.

During the same period, reports emerged that a vessel had been struck near the Strait of Hormuz, heightening regional tensions. Some reports said the attack was connected to the sanctions and military measures.

In response to the market reaction, international oil prices rose while U.S. Treasury prices fell, pushing short-term and medium- to long-term yields broadly higher. Bond prices and oil prices reacted quickly immediately after the report.

There were reports that Iran had said it would not engage in talks unless former President Trump’s threats ceased. So far, no additional official announcement of an agreement between the two sides has been made.

The news is having an immediate impact on energy markets, marine insurance, and shipping routes. Investors are watching for further volatility in oil prices and the Treasury market.