Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessOil Climbs, Treasuries Drop After US Strikes Iran: Markets WrapOil rose and Treasuries fell after the US launched another round of strikes against Iran, reviving concern that higher energy prices will keep inflation elevated and interest rates higher for longer.Author of the article:Last updated 21 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Fuel storage tanks at a PT Pertamina facility in Tanjung Priok Port in Jakarta, Indonesia, on Friday, July 3, 2026. Indonesia posted its first monthly trade deficit in six years, with higher energy costs tied to the Middle East conflict ending a run of surpluses that had helped underpin the country's currency. Photographer: Dimas Ardian/Bloomberg Photo by Dimas Ardian /Bloomberg(Bloomberg) — Oil rose and Treasuries fell after the US launched another round of strikes against Iran, reviving concern that higher energy prices will keep inflation elevated and interest rates higher for longer.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBrent crude climbed more than 3% to $78.50 a barrel as conflicting claims over the status of the Strait of Hormuz fueled speculation about potential supply disruptions. Treasuries dropped across the curve with the yield on the rate-sensitive two-year bond climbing three basis points to 4.23%, the highest since February 2025. Australian and Japanese sovereign bonds also fell, while the dollar strengthened against all of its Group-of-10 peers.Stocks were mixed with US equity-index futures slipping 0.2%, while MSCI’s gauge for Asia Pacific shares fluctuated between small gains and losses. Tech remained in focus, with SK Hynix Inc. shares falling 5% in Seoul after its US-listed American depositary receipts surged 13% in their trading debut on Friday.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRenewed tensions in the Middle East come at a pivotal time for markets as investors brace for the start of earnings season, with Goldman Sachs Group Inc. and JPMorgan Chase & Co. due to report Tuesday. The results will mark the first major test of whether corporate earnings can justify a rally fueled by optimism over artificial intelligence.“A resumption of attacks between the US and Iran could become a negative catalyst for markets,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab. “In periods of heightened geopolitical risk, investors tend to favor sectors with strong earnings, which means semiconductor shares are likely to remain relatively resilient.”In other corners of the market, precious metals declined, with gold losing 1.2% to about $4,070 an ounce, while silver dropped 1.7%, as higher oil prices and inflation concerns boost the prospect for higher interest rates. Bitcoin erased earlier losses to trade around $64,175.Earlier, the US military launched strikes Sunday aimed at further weakening Iran’s ability to strike civilian vessels transiting the Strait of Hormuz, the US Central Command said. The latest action followed Iranian drone and missile attacks on US allies including Kuwait, Jordan and Qatar.What Bloomberg Strategists Say…US bonds are also vulnerable to more losses should oil prices stay firm as short positioning in Treasury futures is well below the extremes seen in August and September last year and within the range seen since early February. That suggests the oil-bonds-dollar nexus will continue to play out in the near term.— Mark Cranfield, MLIV. To read the full analysis, click here.Confusion over the status of the Strait of Hormuz added to the uncertainty, with Iran saying it had closed the waterway, while the US military and maritime authorities said shipping continued through its southern route.Investors will also closely gauge this week’s US inflation data, after oil’s biggest weekly gain since mid-May revived concerns that higher energy costs could further complicate the disinflation story. Traders have ramped up bets on further tightening, with swaps pricing almost 40 basis points of Federal Reserve interest-rate hikes by December, up from about 15 basis points in early June.Fed Chair Kevin Warsh will also make his first congressional appearance since taking the helm after pledging to scale back forward guidance on the rate outlook.Elsewhere this week, Asian markets will look to China’s second quarter growth data for fresh signs of a slowing economy from sluggish domestic demand and Bank of Korea’s policy decision.Corporate News:Nippon Paint Holdings Co. has made multiple offers for Akzo Nobel NV’s decorative paints business in the past month, according to people with knowledge of the matter.Regis Resources Ltd. has announced it will not submit a counterproposal to match the bid made by Genesis Minerals Ltd. for Vault Minerals Ltd.Some of the main moves in markets: StocksS&P 500 futures fell 0.3% as of 9:44 a.m. Tokyo timeHang Seng futures rose 0.3%Nikkei 225 futures (OSE) fell 0.5%Japan’s Topix rose 0.3%Australia’s S&P/ASX 200 fell 0.2%Euro Stoxx 50 futures fell 0.1%CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%The euro fell 0.2% to $1.1397The Japanese yen fell 0.2% to 162.00 per dollarThe offshore yuan was little changed at 6.7858 per dollarCryptocurrenciesBitcoin fell 0.7% to $63,745.66Ether fell 0.4% to $1,813.41BondsThe yield on 10-year Treasuries advanced three basis points to 4.59%Japan’s 10-year yield advanced five basis points to 2.750%Australia’s 10-year yield advanced three basis points to 4.87%CommoditiesWest Texas Intermediate crude rose 4.2% to $74.40 a barrelSpot gold fell 1.1% to $4,073.26 an ounceThis story was produced with the assistance of Bloomberg Automation.—With assistance from Matthew Burgess and Momoka Yokoyama. 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