Trump's Iran sanctions threat rattles US markets and pushes debt past $40 trillion

In a Truth Social post, President Donald Trump declared that Iran had missed a chance for a deal and would be subjected to extensive economic warfare, threatening secondary sanctions against any country that supports Tehran. Treasury Secretary Scott Bessent reiterated the possibility of additional sanctions on foreign entities that do business with Iran. The rhetoric came as global oil benchmarks rose to near-monthly highs and US crude edged above $86 per barrel, while the Dow Jones Industrial Average slipped more than 700 points, marking its worst performance in three weeks.

The 30-year Treasury yield pushed above 5.25 percent, reflecting investor unease. A Treasury update also revealed that total US debt has now surpassed $40 trillion, accelerated by war costs and recent tax cuts. Analysts noted that the ongoing closure of the Strait of Hormuz is inflating oil prices and adding pressure to US inflation and bond markets.