Treasury yields and oil prices rise after U.S.-Iran strikes near Strait of Hormuz

Summary

Treasury yields and oil prices rose after the U.S. and Iran exchanged air strikes near the strategically important Strait of Hormuz shipping channel over the weekend. The escalation disrupted earlier signs of a potential ceasefire extension, pushing West Texas Intermediate crude futures up more than 4% to $90.92 and Brent crude higher as well. The renewed geopolitical uncertainty drove borrowing costs higher on the first trading day of June.