Trump administration enforces Iran blockade and 20% shipping toll, sending WTI crude up $6.24 and US 2-year yields to one-year highs.
The US announced a full blockade on Iran and a 20% toll on Strait of Hormuz shipping, triggering a near-10% surge in WTI crude to $77.64. Gold fell $121 to $3,998, while US 2-year yields rose 5.7 bps to 4.26%, the highest since February 2025.
The June federal budget deficit reached $120 billion, below the $138 billion estimate. Fed Governor Waller signaled potential rate hikes if core inflation data surprises to the upside, reversing his dovish stance.
Markets reacted sharply, with the S&P 500 down 0.8% and Nasdaq down 1.7%. The USD strengthened, while the AUD lagged as geopolitical tensions escalated.