Oil Climbs as US-Iran Deadlock Lifts Bond Yields: Markets Wrap

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 a revival of the Strait of Hormuz while stoking inflation concerns.

US crude settled around $98, with the near-halt of traffic through the waterway reigniting worries about further energy disruptions. The Treasury market, which has priced out the odds of Federal Reserve rate cuts this year amid the Middle East conflict, saw an increase in yields. Another rally in chipmakers left the S&P 500 near its all-time highs, but most of the US equity benchmark’s shares retreated.