U.S. Stocks Slide for Third Day as Oil and Bond Yields Surge on Strait of Hormuz Strikes

U.S. stocks fell for a third consecutive session on Monday, as fresh military strikes near the Strait of Hormuz pushed oil futures and government bond yields sharply higher. The drop extends a losing streak driven by escalating tensions between the United States and Iran. According to market analysts, the latest round of strikes in the strategic waterway—a key passage for global oil shipments—raised fears of supply disruptions. As a result, crude oil prices spiked, adding to inflation concerns. At the same time, bond yields climbed, reflecting investor expectations that central banks may need to keep interest rates higher for longer to cool price pressures. The combination of higher energy costs and rising yields weighed heavily on equities, with major indices closing in negative territory. No sector managed to post gains, as traders moved to safer assets. Observers note that the market’s reaction is a direct response to geopolitical risk, not a shift in corporate earnings. Still, the sustained selloff signals growing unease about the economic impact of a prolonged conflict in the region. Analysts say investors are now watching for any diplomatic moves or further military escalation that could determine whether the current slide deepens or stabilizes in the coming days.