US Treasury secretary Scott Bessent warned currency traders that shorting the yen meant betting against "the house", but his rhetoric failed to lower government borrowing costs or resolve disruptions in the Strait of Hormuz. With Brent crude smashing through $100 a barrel, hosts Rob Armstrong and Katie Martin explore what Bessent can actually do to stem rising yields. The pair also discuss shorting strategies, including a lunch-disrupting coffee company and AI-related plays. The episode underscores mounting pressure on global markets as oil prices climb and geopolitical tensions persist.

Bessent's comments reflect broader concerns about currency volatility and energy security. Despite his tough stance, market forces continue to push yields higher, complicating efforts by the administration to stabilize financial conditions. Meanwhile, the ongoing closure of the Strait of Hormuz keeps energy markets on edge.

The discussion highlights how investors are navigating an environment marked by high commodity prices, uncertain monetary policy, and shifting geopolitical dynamics. With inflation fears resurging, central banks face growing challenges in balancing economic stability and growth.

Listeners can access the full episode via the FT Unhedged podcast.