On 2026-09-01, the yield on the 10-year U.S. Treasury reached 4.80%, its highest level since early 2025, according to The Associated Press's reporting. ^[1] The Congressional Budget Office estimated in August 2026 that the U.S. federal government's budget deficit would top $2 trillion this year, equal to about 6% of the U.S. economy, and the U.S. government said its total debt has reached $40 trillion. ^[2] US Treasury Secretary Scott Bessent stated on 2026-06-25 during a conversation with Larry Kudlow in Asheville, North Carolina, that new oil pipelines will allow the US to bypass the Strait of Hormuz within two years. ^[3] The US Treasury Department announced plans to expand sanctions against financial institutions and entities maintaining commercial relationships with Iran. ^[4] US Treasury Secretary Scott Bessent stated on September 1, 2026, that the Strait of Hormuz will be like a worthless piece of water in two years because oil will be shipped through land-based pipelines. ^[5] On 2026-09-01, the 5-year U.S. Treasury yield touched 4.55%, its highest since October 2025, and serves as a benchmark that influences auto loan rates. ^[6] Ten-year German bond yields reached 3.35%, the highest in more than 15 years, and 10-year U.K. bond yields reached 5.14%, approaching levels not seen since the 2008-2009 global financial crisis. ^[7] Scott Bessent claimed that in two years, the Strait of Hormuz will become a body of water with no value for energy transport. ^[8] Two tankers attempting to exit the Strait of Hormuz were hit by projectiles late on 2026-06-24, according to the maritime security consultancy Marisks. ^[9] US officials stated that the branches of Banque Misr in the United Arab Emirates conducted business worth 1.8 billion dollars with Iran over the last two years. ^[10] Iran has effectively blocked the Strait of Hormuz during the Middle East war, disrupting shipping for oil, natural gas, and other commodities. ^[11] Scott Bessent remarked that the Strait of Hormuz is a choke point for many other countries but not for the United States. ^[12]