Geopolitical uncertainty and stalled US-Iran talks drive safe-haven flows, pushing crude prices and Treasury yields higher.
Oil prices climbed as Middle East tensions disrupted shipping in the Strait of Hormuz, with fewer than 10 vessels transiting daily. WTI crude rose 1.5% to $102.65, while Brent gained 1.3% to $107.05 amid stalled US-Iran negotiations and limited diplomatic progress from Trump’s China visit.
The dollar strengthened broadly, with EUR/USD down 0.2% to 1.1643 and AUD/USD falling 0.7% to 0.7167. Treasury yields also advanced, with the 10-year up 7 bps to 4.53% and the 30-year rising 5 bps to 5.06%. US equity futures retreated, reflecting broader risk aversion.
Markets remain focused on geopolitical risks, with no immediate resolution in sight for the Middle East conflict or US-China diplomatic efforts. The lack of oil tanker traffic through the Strait of Hormuz continues to support crude prices.