Brent crude jumped more than five percent on Monday to exceed $120 a barrel, but US bonds rose sharply as Iranian drones struck the oil industry zone in Fujairah, the United Arab Emirates’ main oil export port outside the Strait of Hormuz.
The UAE Ministry of Defense intercepted three of four Iranian cruise missiles, while the fourth fell into the sea. Two passenger flights were diverted to Dubai as alerts spread across the Emirates.
US bond market sends warning
The yield on 10-year US Treasury bonds rose to 4.46%, the highest level in nine months Price traders under inflation pressure From high energy costs.
In bond market parlance, a sell-off means that investors are selling bonds, causing prices to fall and yields to rise. So selling bonds indicates higher yields. They are the same event described from two angles:
- Quote: sell bonds (prices have fallen)
- Yield View: Yields increased
Fed funds futures now indicate no interest rate cuts by the Fed until December 2027. Traders See 38% probability of rate hike by March 2027.
Bonds usually rise due to geopolitical risks. Monday’s movement suggests that markets view persistent inflation as the biggest threat.
“It looks like $5 a gallon gas prices and 7%+ mortgages are on the way. The bond market needs help.” books Analysts in Al Qubaisi’s message.
The strike hits the Hormuz bypass center
The UAE Ministry of Defense indicated the discovery of four munitions coming from Iran. Reportedly, three missiles were successfully intercepted over the country’s territorial waters, and the last one fell into the sea.
The Ministry of Defense confirmed that the sounds heard in various parts of the country are the result of the successful interception of air threats. books In a job.
There were three Indian workers Moderate injury in Fujairah. A tanker was bombed north of the port over the weekend.
Loading operations in the Hormuz bypass axis were partially suspended after three drone strikes in four days. The attacks broke the fragile ceasefire between the United States and Iran It took effect on April 8.
Iranian Brigadier General Ibrahim Al-Faghari said: “Perhaps a new chapter of power will open tonight, one that the opponents have never witnessed before.” to caution To further escalate in a post on X.
Fujairah Center is the only major port for exporting oil to the United Arab Emirates outside the Strait of Hormuz. It is fed by a specially designed pipeline to bypass the choke point.
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