FX.co ★ French Bond Yields Remain High as US-Iran Crisis Fuels Inflation Worries

France’s 10-year OAT yield held at 3.7%, near its highest level in years, as inflation worries intensified following the collapse of US‑Iran peace talks. Washington blamed the breakdown on Tehran’s refusal to curb its nuclear program, while Iranian officials denounced what they called "unreasonable" US demands. Further escalating tensions, US President Donald Trump threatened to impose a blockade on the Strait of Hormuz, a critical chokepoint for global oil shipments, sending Brent crude prices up to $102 per barrel. The price spike has deepened the global energy crisis, fueling fears of an inflation shock and prompting traders to price in nearly three ECB interest rate hikes by the end of 2026, up from two just a week earlier.