US 30-year Treasury yield nears 5% on Iran conflict uncertainty

U.S. Treasury yields climbed toward 5% on Wednesday, driven by escalating tensions in the Middle East and concerns about rising inflation. The 30-year Treasury yield approached a significant psychological threshold, adding to market jitters.

West Texas Intermediate crude oil surpassed $95 a barrel, reflecting the heightened geopolitical risk. Investors are closely watching developments in the Iran conflict, particularly after Kuwait and Bahrain reported intercepting ballistic missiles and drones launched by Iran. These attacks, which resulted in one fatality in Kuwait, underscore the fragile security situation in the region.

The market's unease stems from the perceived lack of progress in negotiations between Washington and Tehran aimed at ending the conflict and reopening the Strait of Hormuz. The ongoing hostilities and the potential for further escalation continue to pressure oil prices and influence U.S. debt yields.