Oil Plunges, Treasury Yields Fall as Investors Price Iran De-escalation

Oil prices fell sharply on August 2 after President Trump said U.S. forces would hold off on new strikes against Iran. On August 3, U.S. Treasury yields dropped as investors read lower oil as a disinflationary impulse. Trump made the pause conditional — "subject to being able to rapidly make a DEAL" — leaving the strike option live.