Wall Street Falls as 10-Year Yield Hits 2007 High on Iran War

The S&P 500 closed down 0.7% and the Nasdaq Composite fell 0.9% on Monday as bond yields jumped and oil prices swung sharply, with geopolitical tension tied to the war with Iran driving the moves, according to NBC News.

Why did stocks fall Monday?

Both major indexes declined as oil prices rose and Treasury yields climbed to multiyear highs, NBC News reported. The report described Monday's swings as a continuation of "this year's turbulent markets," tied directly to the standoff over the Strait of Hormuz and the broader war with Iran.

Why are bond yields at their highest level since 2007?

The 10-year U.S. Treasury yield rose as high as 5.27% Monday, its highest level since mid-June 2007, NBC News reported. A wide range of other Treasurys traded above 5%, and the 30-year bond yield hit its highest point since May 2004. The 2-year Treasury, often watched as a signal of where markets expect central bank rates to move, reached its highest level since 2024.

Market analyst Ed Yardeni, quoted in the NBC News report, wrote Saturday that "the significant increase in oil prices so far this year hasn't knocked the wind out of the global economy's sails." He added that "the question is whether rapidly rising interest rates will do so," and warned that "these higher rates also exacerbate" existing strains, according to the excerpt NBC News published.

Why did oil prices swing so much during the day?

Brent crude briefly rose above $108 per barrel before settling above $106, NBC News reported. The early spike came amid the standoff over the Strait of Hormuz, but prices eased after reports that mediators planned separate meetings with U.S. and Iranian officials. Iran's semiofficial ISNA news agency downplayed those talks, saying Foreign Minister Abbas Araghchi would meet with mediators but that no U.S. representatives would attend, per the NBC News account. Reports that President Trump was open to offering Iran economic concessions to restart negotiations also eased pressure on oil prices, though NBC News said it had not confirmed those reports independently.

What is the dispute over the Strait of Hormuz?

Trump said over the weekend that he had rejected a recent Iranian proposal to reopen the Strait of Hormuz, the waterway through which critical energy supplies flowed before the war, according to NBC News. "They want to make a deal, and I think that's fine," Trump told reporters in Washington, per the report. "I like making a deal too, but ... that deal would not be acceptable."

What do these market terms mean?

Treasury yield: The return an investor earns on U.S. government debt; yields rise when bond prices fall, often reflecting expectations of higher interest rates or inflation.

Brent crude: A global benchmark price for oil, used to price roughly two-thirds of the world's traded crude, according to the London ICE exchange that lists the contract.

Strait of Hormuz: A narrow waterway between Iran and Oman through which a large share of the world's seaborne oil exports has historically passed, per the NBC News report describing its role before the war.

For full market details and the original reporting on Monday's trading session, see NBC News.