US Treasury Secretary Scott Bessent told Reuters that elevated bond yields and headline inflation are temporary pressures that will ease once the Iran conflict concludes. Speaking at a G7 finance leaders meeting in Paris, Bessent expressed less concern than other central bankers about the bond market sell-off and inflation surge. He noted that oil markets are already pricing in resolution, with Brent crude futures at $105 for July but $88 for December delivery, signaling expectations of normalized energy prices. Bessent said headline inflation will remain elevated during the conflict but is unlikely to seep into core inflation within three to four months. He emphasized that central bankers typically adopt cautious rhetoric as a preventative measure, but views current market pressures as distinctly transient rather than structural concerns requiring immediate policy action.
