US Treasury bond yields and the US dollar edged slightly higher as tensions resurfaced in the Strait of Hormuz.

With the closure of the Strait of Hormuz causing oil prices to rise, US bond yields and the US dollar have seen a slight increase, intensifying inflation concerns. Krisada Yoonaisil of Exness stated in a report that Iran's changing rhetoric regarding the Strait of Hormuz over the weekend, as well as the US seizing a cargo ship flying the Iranian flag, may cause market anxiety. Iran has also indicated that they may not participate in a second round of negotiations. The financial market strategist said that this may heighten concerns about a potential long-term disruption in global energy supply, fueling inflation worries and driving up US bond yields. According to Tradeweb data, the yield on the 10-year US Treasury bond rose by 2.4 basis points to 4.267%. The DXY US dollar index increased by 0.2% to 98.311.