Traders work on the floor of the New York Stock Exchange during afternoon trading on February 20, 2026 in New York City.
Miguel M. Santiago | fake images
US Treasury yields fell on Tuesday as oil prices plunged after US President Donald Trump warned that Iran would be hit “TWENTY TIMES MORE” if it tried to stop shipments through the Strait of Hormuz.
The 10-year Treasury yield fell nearly 2 basis points to 4.117%. The 30-year Treasury bond fell just under a basis point and yielded 4.734%. The 2-year Treasury yield decreased nearly 3 basis points to 3.563%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
“If Iran does anything to stop the flow of oil within the Strait of Hormuz, the United States of America will hit them TWENTY TIMES HARDER than they have been hit so far,” US President Donald Trump said in a post on Truth Social on Monday in the United States.
Trump had signaled early on that the conflict with Iran could end soon, causing oil prices to fall 10% before paring losses.
G7 energy ministers are scheduled to meet virtually later on Tuesday to discuss a possible release of emergency oil reserves to address supply disruptions caused by the Iran war, sources told CNBC.
The talks came after the countries’ finance ministers met on Monday to consider tapping strategic reserves, although no decision was reached. Discussions between member states have been “positive”, the sources said, adding that any coordinated release would likely come after the energy ministers meeting.
In a statement issued late Monday, International Energy Agency Executive Director Fatih Birol said he participated in the G7 finance ministers’ meeting at the invitation of France to discuss the global economic outlook and the escalating conflict in the Middle East.
“We discussed all available options, including making the IEA’s emergency oil reserves available to the market,” Birol said.
IEA member countries hold more than 1.2 billion barrels of public emergency oil reserves, along with an additional 600 million barrels of industrial reserves held under government obligation.
Birol added that he remains in close contact with energy ministers around the world, including those of Saudi Arabia, Brazil, India, Azerbaijan and Singapore.
Investors are also preparing for February inflation data due on Wednesday, followed by the January personal consumption expenditures index and JOLTS job openings numbers on Friday.
—CNBC’s Emma Graham contributed to this report.
