Geopolitical Tensions Spike Oil Prices and Pressure US Treasuries

US Treasury markets faced downward pressure on Thursday afternoon as crude oil prices spiked, driven by escalating geopolitical instability in the Middle East. The benchmark ten-year note yield climbed 2.9 basis points to reach 4.323% as investors reacted to shifting risk dynamics and inflationary pressures associated with energy costs. The volatility was triggered by reports that Iran's parliament speaker, Mohammad Bagher Ghalibaf, resigned from the country's negotiating team. This move, allegedly caused by interference from the Revolutionary Guard, has raised significant concerns regarding the viability of diplomatic resolutions between the two nations. Crude oil futures experienced a sharp rally, surging nearly 6% at one point before settling at a gain of more than 3% for the session. Adding to the tension, President Donald Trump issued a directive to the US Navy to "shoot and kill" any vessel deploying mines in the Strait of Hormuz, a critical artery for global energy supplies. President Trump further noted internal friction between hardliners and moderates within the Iranian leadership. He emphasized that any potential peace deal would only be reached when it is deemed appropriate and beneficial for the United States and its allies, dismissing suggestions that he is anxious to end the conflict. In separate economic news, the Labor Department reported a slight miss in employment data. Initial jobless claims for the week ending April 18 rose to 214,000, exceeding the 212,000 forecast and the previous week's revised 208,000.