Wall Street’s Inflation Alarm From Iran — What It Means for Crypto

Wall Street is warning that US-Israeli strikes on Iran have raised inflation risks, pushing Treasury yields to their biggest daily jump since October. Ten-year yields surged 10 basis points to 4.03% as oil spiked more than 6% after a near-total halt of tanker traffic through the Strait of Hormuz.

Rate-cut expectations collapsed: traders now price the first Fed cut for September at the earliest, and bets on a third reduction in 2026 have all but evaporated. Former Treasury Secretary Janet Yellen said the Iran conflict puts the Fed "even more on hold," noting inflation is running around 3%—about a percentage point above the Fed’s target—and that Trump-era tariffs add roughly half a point.

She warned that if markets conclude the Fed isn’t serious about getting inflation back to 2%, expectations could become permanently higher. JPMorgan CEO Jamie Dimon called inflation a potential "skunk at a party," adding that a protracted campaign would have a much larger impact than a short-lived flare-up.

Iran

wall street, iran, inflation, treasury yields, 10-year yield, oil spike, strait of, fed cuts, janet yellen, crypto