---
title: "Iran Situation | Surge in Oil Prices Triggers Investor Concerns Over Stagflation, Year-to-Date Gains in US Bond Market Completely Erased"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279181193.md"
description: "The attacks by the United States and Israel on Iran have led the Iranian Revolutionary Guard to threaten to block the Strait of Hormuz, driving up oil prices and raising investors' concerns about stagflation. The gains in the U.S. Treasury market have been erased, with the Bloomberg index falling 1.7% since the end of February. Morgan Stanley strategist Bradley Tian pointed out that the inflation triggered by rising energy prices and policy uncertainty is putting pressure on long-term U.S. Treasuries"
datetime: "2026-03-16T01:01:15.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279181193.md)
  - [en](https://longbridge.com/en/news/279181193.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279181193.md)
---

# Iran Situation | Surge in Oil Prices Triggers Investor Concerns Over Stagflation, Year-to-Date Gains in US Bond Market Completely Erased

The United States and Israel jointly attacked Iran, after which the Iranian Revolutionary Guard declared its intention to block the Strait of Hormuz and attack commercial ships sailing in the strait, leading to a near halt in shipping and driving up oil prices. As the war triggered a surge in oil prices, investors panicked over inflation and economic growth risks, causing the U.S. Treasury market to erase all gains made this year.

A Bloomberg index measuring U.S. Treasury performance has fallen 1.7% since the end of February, dropping below last year's year-end level. This is due to concerns about stagflation pushing up yields, forcing Wall Street to lower its expectations for interest rate cuts in the U.S. over the next year.

Morgan Stanley strategist Bradley Tian stated in a report: "The inflation and policy uncertainty triggered by rising energy prices continue to put pressure on long-term U.S. Treasuries."

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