Trump’s withdrawal from the Iran memorandum sends crude and bond yields higher while precious metals retreat amid renewed geopolitical tensions.
Oil prices surged 6% to $74.90 after Trump abandoned the late-June Iran memorandum, marking the highest level in over two weeks. The move effectively resets negotiations, raising concerns over supply disruptions in the Strait of Hormuz.
Ten-year Treasury yields climbed 5 bps to 4.58%, nearing June highs and threatening a breakout to levels last seen in May. Gold and silver reversed early gains, falling 1.3% to $4,052 and 2.9% to $58.25, respectively, as risk aversion weighed on precious metals.
Trump also escalated trade tensions by threatening Spain over NATO defense spending, calling Madrid a “terrible partner.” The combined geopolitical risks amplified market volatility, with investors pricing in heightened uncertainty ahead of further developments.