Iran's foreign ministry said maritime security and freedom of sea trade must be guaranteed for all and that no country should attack or impose naval blockades while simultaneously demanding to act as a guardian of shipping. It urged regional states to face reality, stop shirking responsibility and making unfounded accusations, and warned that repeating charges can lead accusers to believe them and misjudge solutions if they genuinely want to resolve the problem.

Sultan Barakat said Iran appeared to avoid turning the Red Sea into a major front in the first six months of the war, preferring Saudi Arabia and Egypt remain outside a US-led military coalition. Tehran likely initially urged the Houthis not to provoke Saudi Arabia, but Saudi strikes on Sanaa international airport in July altered calculations. Iran may not seek direct Saudi–Houthi confrontation, yet once the Houthis respond Tehran is unlikely to demand continued passivity without undermining its alliance credibility. Escalation can align with Iranian interests but does not imply Tehran ordered Houthi attacks. With US fuel prices and inflation rising, the Trump administration is watching Yemen closely; a sustained Red Sea threat could prompt Saudi Arabia and Egypt to move closer to Washington and enable informal coordination with Israel and European naval forces. By threatening the Bab al‑Mandeb strait, the Houthis may therefore produce results contrary to Iran’s initial intent.

US Treasury yields rose sharply as higher oil prices rekindled inflation concerns amid strong US growth, heavy debt issuance and widening fiscal strain. Citigroup says 20-year Treasuries offer an attractive risk-reward for investors able to tolerate further volatility. Citigroup rates strategist Jason Williams says a Treasury put would strengthen if yields breach 5.3%, reflecting market expectations policymakers would act to curb a rapid rise; he adds that, unless KEVIN WARSH muddles messaging at this week’s press conference, shorts are unlikely to drive yields above that level. Markets price a Fed rate hike this week; Citigroup says the Fed chair need not adopt an overtly hawkish tone. Williams also notes corporate pension and fixed-income rebalancing demand would provide an additional layer of support once yields exceed 5.3% by allowing plans to lock higher returns against liabilities.