U.S. Treasury prices decline as investors react to renewed threats of military action tied to tensions involving Iran and Hezbollah. Bloomberg and the Financial Post both report that President Donald Trump reiterates the possibility of military action in response to Hezbollah’s attacks on Israel. The news contributes to higher oil prices, which in turn raises concerns that energy costs could feed into inflation. In response, market participants reassess inflation expectations and how that may affect interest-rate outlooks. The articles describe the move as a repricing of risk rather than a change in specific economic data, with government-bond markets reflecting expectations for potentially firmer inflation pressures if geopolitical developments sustain or increase energy costs. Overall, both sources point to the same chain of events: renewed rhetoric about Iran-linked military action, a rise in oil prices, and resulting pressure on Treasuries as inflation fears increase.