The yield on the US 10-year Treasury note climbed to around 4.35% on Monday, reversing last week’s decline as escalating tensions in the Middle East heightened inflationary pressures. President Donald Trump announced a blockade of the Strait of Hormuz after weekend peace talks between the US and Iran ended without an agreement. Vice President JD Vance left Islamabad without securing a deal with Iranian counterparts, citing their refusal to halt efforts to pursue nuclear weapons, while Tehran reportedly demanded control of the Strait of Hormuz, war reparations, and the release of frozen assets. The effective shutdown of the key shipping route has pushed energy prices higher and intensified inflation risks, reinforcing expectations that the Federal Reserve may delay rate cuts or even consider rate hikes.
