Oil Price Surge Pushes Up US Treasury Yields, Markets Await Fed Rate Decision

July 29 - As the major conflict in the Iran war escalated again and international oil prices surged, US Treasury yields ended a three-day losing streak on Wednesday. Markets are concerned that rising energy prices will intensify inflationary pressures, while waiting for the Fed's interest rate decision later. The US and Saudi Arabia jointly attacked an Iran-backed Iraqi armed group on Wednesday, marking the first US airstrike in the Middle East since President Trump suspended airstrikes on Iran last week. In addition, Iran said it had launched attacks on US military bases in Jordan and ships in the Strait of Hormuz, and Trump vowed to retaliate. As of press time, both WTI crude oil and Brent crude oil rose more than 7%, to $84/barrel and $87.81/barrel respectively. Affected by the oil price rise, the US 10-year Treasury yield rose 2.1 basis points to 4.625%, hitting 4.6387% intraday; the 30-year Treasury yield rose 0.8 basis points to 5.104%, with an intraday high of 5.113%. Market attention then turned to the Fed policy meeting.