Sanctions vs Bonds: Iran's Economic Pressure Tests Markets

The U.S. leans on sanctions rather than new strikes to pressure Iran, as Treasury Secretary Bessent touts a possible $4 billion debt buyback and says the deficit may have peaked; however, bond yields rebound and the S&P 500 falls about 0.9%. A UAE trade cutoff could hurt Tehran, Japan sees inflation at a high for the year, Moderna/Merck report cancer vaccine data, and bitcoin rallies while Walmart slides on weak outlook and yen intervention fuels carry trades.