Oil prices climbed as prospects for peace in the Middle East dimmed, reviving concerns that prolonged geopolitical tensions may threaten supplies and keep energy costs elevated. The advance in crude reflects renewed anxiety over potential disruptions to oil flows from a region that accounts for a significant share of global production.

Treasuries sold off as investors reassessed the outlook for interest rates amid persistent inflation risks tied to higher energy prices. The selloff pushed yields higher across the curve, with the benchmark 10-year note leading the move. Market participants are weighing the possibility that sustained oil gains could complicate the Federal Reserve's path toward rate cuts.

The simultaneous move in oil and bonds underscores the interconnected nature of geopolitical risk and monetary policy expectations. Analysts suggest that any escalation in the Middle East could further tighten energy markets, adding upward pressure on consumer prices and potentially delaying monetary easing.

Traders remain focused on diplomatic developments and supply data for clues on the next directional move. The Brent crude benchmark and WTI futures both posted gains, while Treasury yields rose in tandem, highlighting the market's sensitivity to geopolitical headlines.