Oil plunges on Iran de-escalation hopes, dragging US Treasury yields lower

Crude prices slide as investors price in reduced geopolitical risk, triggering a cross-asset selloff that pulls benchmark bond yields down over 1 basis point.

By Handelsavisen Newsroom · Automated 2026-08-03 08:41 UTC · 1 min read

Crude oil prices fell sharply on Monday as markets reacted to emerging signs of de-escalation in the conflict involving Iran.

The drop in energy benchmarks triggered a broader risk-off sentiment, pulling US Treasury yields lower in tandem with the commodity slump.

688%. The move reflects a rapid repricing of geopolitical risk premiums that had been embedded in both energy and fixed-income markets.

The yield on the 10-year US Treasury note, the key benchmark for government borrowing, declined by more than 1 basis point to settle at 4.688%.

The move reflects a rapid repricing of geopolitical risk premiums that had been embedded in both energy and fixed-income markets.

This development follows a period of heightened volatility driven by tensions between the United States and Iran.

Previous coverage noted that Asian equities traded mixed as uncertainty over a potential deal persisted, while Indian yields had eased in June as a truce cooled oil risk.