U.S. Treasury yields rose to multi‑month highs on Wednesday as escalating tensions with Iran and higher oil prices revived concerns about inflation and further Federal Reserve interest rate increases. Two-year yields, which are sensitive to interest rate expectations, climbed to 4.3105%, their highest level since February 2025, while the 10-year yield reached 4.6606%, the highest since May 20. Oil prices neared a six‑week peak after President Donald Trump warned of retaliatory strikes on Iranian infrastructure for attacks near the Strait of Hormuz. Fed funds futures now price rising odds of a rate hike by September and almost certainty by year-end.

Prepared by Christopher Adams and reviewed by editorial team.