US Treasury yields rise as oil rally persists

US Treasury yields rose during trading today, July 16, driven by surging oil prices amid escalating tensions between the US and Iran, alongside fears of supply disruptions through the Strait of Hormuz.

Brent crude surpassed the $85-per-barrel mark during today's trading, as markets closely monitor fresh threats to oil tanker traffic in the Strait of Hormuz.

Meanwhile, economic data showed a decline in weekly jobless claims, indicating labor market resilience that gives the Federal Reserve room to maneuver and curb inflation without jeopardizing employment rates.

The drop in jobless claims followed other data released earlier this week that revealed a slowdown in both consumer and producer price inflation.