US-Iran Conflict Escalates — Oil Surges, Markets on Edge
The US and Iran exchanged attacks again, with Trump stating the US would respond forcefully. The US military conducted airstrikes near the Iran-Iraq border, while US and Saudi forces jointly targeted Iran-aligned militias in Iraq. Iran claimed to have intercepted three non-compliant oil tankers in the Strait of Hormuz. The US naval blockade continues, forcing 20 commercial vessels to reroute. Yemen's Houthi forces attacked Saudi oil tankers in the Red Sea. Trump threatened to "hit Iran hard" and sought additional tariffs, pushing oil prices higher. The 30-year US Treasury yield surged 11 basis points to above 5.2% — its highest since June 2007.
Risk reminder: Geopolitical tensions remain highly fluid — further escalation could trigger sharp volatility across risk assets.
