Treasury yields climb as traders watch Iran talks, wait on jobs report

Iran has made a concerted diplomatic push with Gulf states, telling them explicitly that it will hit their oil, power and water plants unless they convince U.S. President Donald Trump to end U.S. strikes on Iran and instead seek a negotiated end to the war that began in February.

Treasury yields fell earlier this week on optimism that a deal to reopen the strait would keep oil prices in check — a key focus for markets given the risk that higher oil could reignite already-elevated consumer price inflation.

"It's better that the strait is open than it is not. But the longer that this back and forth goes on, the more I think it weighs on inflation expectations, it'll weigh on growth," said Will Compernolle, macro strategist at FHN Financial.