Former President Donald Trump is reportedly evaluating military and economic measures targeting Iran, while the Federal Reserve faces a congressional subpoena over its emergency lending activities during the 2023 financial stress period. Market volatility has increased across U.S. equities and Treasury yields.
- Trump is reportedly evaluating targeted sanctions and cyber operations against Iran
- Fed subpoena demands disclosure of $4.2 trillion in emergency lending from 2023
- 10-year Treasury yield rose to 4.87% amid escalating risk concerns
- S&P 500 fell 1.3% on heightened geopolitical anxiety
- WTI crude surged to $88.40 per barrel on supply disruption fears
- CBOE VIX jumped to 24.3, signaling increased market volatility
Former President Donald Trump is said to be reviewing a range of strategic options against Iran, including targeted sanctions and potential cyber operations, as tensions escalate in the Middle East. According to informed sources, the discussions are being led by an informal advisory group that includes national security veterans and former Pentagon officials. While no formal action has been announced, the consideration of new measures has raised concerns about regional stability. The Federal Reserve has been formally subpoenaed by a House subcommittee to produce records related to its $4.2 trillion in emergency credit facilities issued during the 2023 financial market turmoil. The request, which follows a series of congressional hearings, demands full disclosure of lending criteria, collateral requirements, and recipient identities. The Fed’s refusal to fully comply has intensified scrutiny over its transparency and oversight during times of crisis. U.S. Treasury yields rose 12 basis points on the day, with the 10-year note reaching 4.87%, while the S&P 500 dropped 1.3% amid risk-off sentiment. Energy markets reacted sharply: West Texas Intermediate crude climbed 3.1% to $88.40 per barrel, reflecting fears of supply disruptions from the Persian Gulf. Defense stocks, including Lockheed Martin (LMT) and Raytheon Technologies (RTX), gained 4.6% and 3.9%, respectively. The developments have prompted policymakers and investors to reassess geopolitical risk premiums, with the CBOE Volatility Index (VIX) spiking to 24.3—the highest level since September 2024. Market participants are now pricing in a 62% probability of a rate hike at the March Federal Reserve meeting, up from 48% a week earlier.