Mideast De-escalation Eases Inflation
Lower energy costs from reduced Middle East tensions will ease economic pressures and support Treasury yields
Too little corroboration in the last 3 days to call a trend (10 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"The price of WTI crude rose about +1% on Wednesday amid the absence of a clear path toward resolving the Middle East conflict. Higher oil prices keep the risk of persistent inflation alive, limiting a rebound in Treasuries."
"Instability in the Middle East may have also contributed to the bond rout. Bond yields moved higher on Monday after a 60-day ceasefire between the U.S. and Iran came to an end, with no clear resolution in sight. The conflict in the Middle East, now nearing its six-month mark, has sent oil prices higher, elevating inflation concerns."
"Crude prices continue to climb with the conflict over the Strait of Hormuz unresolved. Bond yields have jumped since the war began because high oil prices are pushing inflation higher."
"Concerns over escalating tensions in the Middle East, compounded with rising inflation fears, have exerted pressure on both stocks and currencies. This market volatility illustrates the persistent risks associated with Middle Eastern tensions, warning of potential impacts on global financial stability."
"The collapse of the MOU reached by Washington and Tehran in June showed that the energy shock was likely to persist, he added. 'I think that's weighing on bonds because we're living in this world where we're going to have supply shock after supply shock,' said Compernolle"
"oil prices are edging higher and helped push Treasury yields upward in the bond market"
"the yields, of course, are being driven mainly at this point in time by concerns coming out of the Middle East and whether or not there is going to be significant energy inflation"
"Oil prices surged in July as tensions escalated in the Strait of Hormuz and Iran-backed Houthi rebels in Yemen targeted shipping in the Red Sea. The escalating conflict pushed Brent crude, the international benchmark, from about $71 a barrel at the start of the month to above $100 by July 23."
"Oil prices surged in July as tensions escalated in the Strait of Hormuz and Iran-backed Houthi rebels in Yemen targeted shipping in the Red Sea... Barring fresh escalations in the Iran war, inflation could continue to ease."
"The two-year Treasury yield dropped 5.4 basis points as investors weighed the economic impact of elevated energy costs since the conflict began."