Treasury Secretary Bessent Forecasts Oil Price Drop and Bond Yield Reversal Amid Iran Conflict End

Published: Sep 5, 2026 16:04

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US Treasury Secretary Bessent noted that the current rise in oil prices and bond yields are historically highly correlated. He predicts that once the Iran conflict ends and the situation eases, the global oil market will face severe oversupply, and oil prices could plunge to $40-50 per barrel, at which point bond yields and inflation will also pull back in tandem, reversing the aforementioned high correlation.

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