The price of oil soars to high rates of return on US debt, and the market awaits the Fed interest rate resolution

ON 29 JULY, AS THE MAIN CONFLICT IN THE IRANIAN WAR ESCALATED AGAIN AND INTERNATIONAL OIL PRICES SURGED, THE RETURN ON UNITED STATES TREASURY DEBT FELL THREE CONSECUTIVE TRADE DAYS AFTER WEDNESDAY. THE MARKET IS CONCERNED THAT RISING ENERGY PRICES WILL EXACERBATE INFLATIONARY PRESSURES WHILE AWAITING THE RELEASE OF INTEREST RATE RESOLUTIONS BY THE FED LATER. ON WEDNESDAY, THE UNITED STATES AND SAUDI ARABIA JOINED FORCES AGAINST IRANIAN-BACKED IRAQI ARMED GROUPS, THE FIRST TIME SINCE UNITED STATES PRESIDENT TRUMP SUSPENDED AIR STRIKES AGAINST IRAN LAST WEEK, UNITED STATES FORCES HAVE LAUNCHED ANOTHER AIR STRIKE IN THE MIDDLE EAST. IN ADDITION, IRAN HAS INDICATED THAT ATTACKS HAVE BEEN CARRIED OUT AGAINST UNITED STATES MILITARY BASES AND VESSELS IN THE STRAITS OF HORMUZ IN JORDAN, WHILE TRUMP HAS PROMISED TO TAKE RETALIATORY ACTION. AS AT THE TIME OF THE SUBMISSION, WTI CRUDE OIL AND BRENT CRUDE OIL HAD DOUBLED BY 7 PER CENT, REPORTING USD 84 PER BARREL AND USD 87.81 PER BARREL, RESPECTIVELY. AS A RESULT OF THE OIL PRICE HIKE, THE UNITED STATES INCREASED ITS 10-YEAR SOVEREIGN DEBT RETURN FROM 2.1 BASIS POINTS TO 4.62 PER CENT, REACHING 4.6387 PER CENT AT ONE TIME, AND FROM 0.8 BASIS POINTS TO 5.104 PER CENT AT THE TOP OF 5.113 PER CENT AT 30 YEARS. THE FOCUS OF THE MARKET WILL THEN TURN TO THE FEDERAL RESERVE POLICY CONFERENCE。