Russia’s Permanent Representative to International Organizations in Vienna, Mikhail Ulyanov, advised Washington to seek peaceful solutions to its issues with Iran, emphasizing that “other options are useless.”
Responding to statements by U.S. Treasury Secretary Scott Bessent—who claimed the Iranian economy would collapse within two weeks—Ulyanov noted that the United States has been expecting the collapse of the Iranian economy since 1980. He added that if Washington finally decides to focus on peaceful solutions, it would be better for both the U.S. and the whole world, reiterating that “other options are useless.”
Bessent had reiterated statements by U.S. President Donald Trump regarding keeping the Strait of Hormuz open, while addressing Iranian oil sales. He claimed that only 15 million barrels of Iranian oil remain available in the Strait and that Iran will likely send its final shipments to China over the next two weeks, after which “they will have nothing left.”
Central Bank of Iran: Positive Economic Indicators Are the Result of Our Policies
For his part, the Governor of the Central Bank of Iran, Abdolnaser Hemmati, responded to Bessent’s claims that “economic pressure exerted by the Trump administration on Iran is bearing fruit,” stating that such comments can only be understood in light of the positive economic indicators achieved by Iran.
Hemmati said: “If what is meant by these remarks is controlling liquidity and the decline in the annual inflation rate in September after 15 months of increases, then yes, his statements this time are correct.”
He added that these indicators are the result of monetary policies implemented by the Central Bank, not external pressure.
The Governor of the Central Bank of Iran had previously announced the bank’s success in curbing liquidity growth through effective monetary tools, preventing banks from creating unbridled new liquidity, alongside a recorded slowdown in the annual inflation rate during September.
Oil Surges Past $107
Conversely, Trump’s rejection of Iran’s offer to reopen the Strait of Hormuz in exchange for lifting the naval blockade and releasing frozen assets led to rising oil prices and a renewed broad sell-off of U.S. Treasuries.
Oil prices rose by more than 3% today, with Brent crude trading above $107 per barrel.
Brent crude futures rose by $3.43 (3.29%) to $107.75 per barrel, while U.S. West Texas Intermediate (WTI) crude reached $94.55 per barrel, up $2.14 (2.32%).
Energy supply risks and strong U.S. economic fundamentals reinforced inflationary concerns, driving traders to expect a more hawkish stance from the Federal Reserve, while the U.S. dollar received support from a continuous rise in long-term U.S. Treasury yields.
In today’s trading, Brent crude rose by about 2% to reach $106.40 per barrel, while WTI traded up roughly 1% at around $93.55.
Oil prices have surged by over 70% since the beginning of the year and are on track to record a third consecutive month of growth. Ongoing tensions in the Middle East and concerns over energy transport route disruptions remain the primary drivers of this price jump.
Rise in Bond Yields
According to a report published by Bloomberg, the renewed sell-off in Treasury bonds followed Trump’s rejection of Iran’s latest proposal to reopen the Strait of Hormuz.
With rising oil prices exacerbating inflationary pressure on the U.S. economy, investors returned to selling Treasury bonds. Amid the sell-off, the 2-year yield—which is highly sensitive to Federal Reserve interest rate policies—rose 5 basis points to 4.90%, while the 10-year yield rose 4 basis points to 5.20%.
The sell-off in Treasury bonds was not limited to the United States; government bond markets in Japan and Australia also faced pressure. These developments come as U.S. Treasury yields had already climbed to multi-year highs last week following statements by Federal Reserve officials regarding interest rates.
On September 16, the Federal Reserve raised interest rates by a quarter of a percentage point to a range between 3.75% and 4%, marking the first rate hike since 2023.
The Federal Reserve Chair stated that inflation remains high and that the decision was made to curb prices, with Fed officials forecasting the possibility of another rate hike later this year.
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