U.S. 10-Year Treasury Yield Hits 4.707%, 18-Month High, as Middle East Tensions Spike Oil Prices on July 23

On July 23, U.S. 10-year Treasury yield surged to 4.707%, hitting its highest level since January 2025, driven by geopolitical tensions in the Middle East and a stronger-than-expected labor market. Brent crude futures jumped 5% to nearly $99 per barrel following reports of a tanker attack off Saudi coasts and renewed U.S. military threats against Iran, raising concerns over energy supply disruption. Meanwhile, initial jobless claims for the week ending July 18 came in at 187,000, significantly below economist expectations of 212,000, reinforcing expectations that interest rates could remain elevated or rise further. The 2-year yield climbed over 4 basis points to 4.343%, and the 30-year yield rose over 4 basis points to 5.188%.
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