Bond market in open revolt as Trump declines Iranian peace deal and oil hits $92 a barrel

Key Points:

• President Trump’s proposed U.S. majority control of Venezuelan oilfields revives colonial-era dynamics, with the U.S. Department of Defense set to hold a 55% stake in North American Blue Energy Partners, a company linked to Venezuelan businessman Alejandro Betancourt López, who has ties to both Trump and Venezuelan officials.
• Despite Iran’s repeated offers to accept a U.S.-proposed memorandum of understanding aimed at ending hostilities and sanctions, President Trump remains resistant, signaling intentions to launch further strikes to degrade Iran’s ability to threaten shipping in the Strait of Hormuz amid ongoing maritime skirmishes.
• Global stock markets are reacting negatively to rising Brent crude prices hitting $92 per barrel and a significant bond market selloff driven by investor concerns over high government debt levels, with major bond yields reaching multi-decade highs in the U.S., U.K., and Japan.
• Analysts warn that the traditional 60:40 stock-to-bond investment strategy is no longer effective as a hedge against inflation over long periods, highlighting the need for more robust portfolio approaches to withstand market volatility and inflationary pressures.
• Climate change and geopolitical tensions are impacting the global sardine supply, with Morocco’s sardine landings dropping nearly 46% due to warming waters pushing fish away from traditional fishing zones and increased fuel costs from the Iran conflict raising operational expenses for fishermen.