U.S. Military Strikes on Iran Send WTI Oil to $74, Treasury Yields Jump to 4.57%

According to iM Securities, U.S. military strikes on Iran on July 11 triggered a sharp surge in crude oil prices and elevated U.S. Treasury bond yields, raising inflation concerns. West Texas Intermediate (WTI) crude jumped to $74 per barrel from lows near $68, with prices exceeding $76 on July 8. U.S. 10-year Treasury yields climbed to 4.57%, approaching the May 19 peak of 4.6663%.

The bond market's sensitivity reflects mounting concerns about inflation pressure from rising energy prices, according to iM Securities analyst Park Sang-hyun. He noted that despite the Federal Reserve's recent dovish stance, Treasury yields continued to rise due to inflationary pressures, with yields near previous highs potentially creating headwinds for financial markets.