Treasuries Fall and Oil Rises on US-Iran Deadlock: Markets Wrap

WATCH: “We want to be in there for the equity bull market,” says Grace Peters of JPMorgan Private Bank. “But we do think that there’s still portfolio resilience that needed to be added.”Source: Bloomberg

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By Rita Nazareth

May 10, 2026 at 10:09 PM UTC

Updated on

May 11, 2026 at 4:01 PM UTC

A renewed advance in oil prices sent bonds lower after the US and Iran failed to agree on terms to end their war, dashing hopes for an imminent revival of the key Strait of Hormuz.

US crude rose to around $98, with the near-halt of traffic through the waterway reigniting worries about more energy disruptions that would fuel inflation. The Treasury market, which has priced out the odds of Federal Reserve rate cuts this year amid the conflict, saw an increase in yields. A rally in chipmakers left the S&P 500 at all-time highs, but most of the gauge’s shares fell.