The correlation between crude oil and 10 year US Treasury yields has reached 65%. This synchronization represents the closest movement between the two asset classes since the first Gulf War began in 1990, according to analysis from the Financial Times.

The tight link highlights the extent to which the outlook for the global economy and major asset classes now depends on the security of shipping traffic through the Strait of Hormuz. The alignment suggests that geopolitical risks to energy supplies are more directly influencing government bond markets than in previous decades.