US-Iran truce expires, oil yields rise
Analysis based on 32 articles · First reported Aug 17, 2026 · Last updated Aug 18, 2026
The expiration of the US-Iran truce and renewed Middle East tensions have driven oil prices higher and pushed long-term Treasury yields to multi-decade highs, tightening financial conditions and pressuring equities. Investors fear prolonged geopolitical risk and sustained inflation, leading to a risk-off tone across global markets.
The 60-day truce between the United States and Iran, part of a June memorandum of understanding, expired on August 18, 2026, without an extension. President Donald Trump reaffirmed he would not extend the truce, and Iran declared it would shift to a 'fully offensive' military posture. Negotiations over reopening the Strait of Hormuz remained distant, with Jared Kushner reporting 'very positive and active conversations' but acknowledging a lack of trust. Treasury Secretary Scott Bessent threatened Iran with unprecedented economic isolation, and Trump threatened to bomb Oman if it interfered with talks. The expiration heightened geopolitical risk, driving oil prices higher (Brent above $91) and pushing long-term Treasury yields to multi-decade highs (30-year above 5.3%). Global equities were mixed, with Asian markets under pressure, while gold and cryptocurrencies showed mixed moves. Soft US economic data reduced expectations for imminent United States — Federal Reserve rate changes, but inflation concerns persisted due to elevated oil prices.
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