President Donald Trump again warned Iran of military action over Hezbollah attacks, sparking a spike in oil prices and a pullback from Treasury bonds.

Following Trump’s threat, Brent crude surged 2.2% to $82.30 a barrel, while 10‑year yields climbed to 4.50%. Traders blamed the jump on both energy price pressure and the Fed’s hawkish stance.

U.S. and Iranian officials are negotiating in Switzerland for a lasting peace. Trump’s post warned Iran that the U.S. might levy tolls if talks stall, tightening the geopolitical risk premium.

The surge in yields reflects investors’ reassessment of inflation risk amid higher energy costs and a potential quarter‑point Fed hike by September, underscoring the fragile balance between monetary policy and geopolitical volatility.