Oil Surge Triggers Worst U.S. Treasury Market Rout Since 'Liberation Day'

Key Facts

U.S. Treasuries recorded their worst weekly performance since the so-called 'liberation day' as global energy prices surged. The escalating conflict in Iran has driven a sharp spike in global oil prices, fueling widespread concerns over persistent global inflation. Geopolitical tensions extended into the weekend, negatively impacting global government bonds and heightening overall market volatility. Rising energy costs have significantly increased inflation expectations, leading to higher bond yields and a subsequent collapse in bond prices. This massive sell-off has placed substantial pressure on fixed-income assets and exchange-traded funds such as TLT. Investors remain on high alert as the combination of geopolitical instability and energy supply risks continues to disrupt the global financial landscape.