{"id":96195,"date":"2026-05-27T20:03:06","date_gmt":"2026-05-27T20:03:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=96195"},"modified":"2026-05-27T20:03:06","modified_gmt":"2026-05-27T20:03:06","slug":"how-iran-engineered-a-global-liquidity-crisis-the-bond-market-meltdown","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=96195","title":{"rendered":"How Iran Engineered A Global Liquidity Crisis&#8211;The Bond Market Meltdown"},"content":{"rendered":"<div>\n<p><strong>This past week saw global sovereign debt markets absolutely dump. Here&#8217;s how it might get a lot worse<\/strong>.<\/p>\n<h1 class=\"wp-block-heading\">Bond Yields Soar<\/h1>\n<p>Friday saw global sovereign debt markets in free fall. Yields spiked across the board-\u00a0not because of some sudden inflation panic, but because of a much deeper, more structural force at work.<\/p>\n<p>The trigger?<\/p>\n<p>The Strait of Hormuz is effectively shut down.That narrow waterway carries about\u00a0<strong>20% of the global oil supply<\/strong>(and a third of global seaborne oil). With it throttled, oil prices have shot higher, slamming net oil importers in EU, Asia, and the UK with a brutal terms-of-trade shock.<\/p>\n<p>For countries like the UK and France, their trade deficit is the primary driver of their current account deficits, and\u00a0are therefore\u00a0widening rapidly, as energy import bills balloon.<\/p>\n<p><figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/cb8fbc7e-f5a8-42d7-ae12-a181168dbbb3\/Screenshot_2026-05-17_at_12.23.03_PM.png?t=1779053529\" alt=\"\"><\/figure>\n<\/p>\n<p>To finance those bigger deficits, these countries have two choices: sell foreign exchange reserves (i.e. dump U.S. Treasuries) or borrow even more. Both paths put immediate upward pressure on bond yields.<\/p>\n<p>If they dump US Treasuries, that&#8217;s selling pressure that leads to lower bond prices (i.e. higher rates), and if they choose to issue debt, that debt must then compete in the global bond market with a rate that is satisfactory to attract demand.<\/p>\n<p><figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/3264bdc6-2314-4c67-aac1-498fe16b7b1f\/Screenshot_2026-05-17_at_2.32.49_PM.png?t=1779053584\" alt=\"\"><\/figure>\n<\/p>\n<h1 class=\"wp-block-heading\">The End of the Backstop<\/h1>\n<p>At the same time, the Gulf oil exporters,\u00a0the same players who normally recycle petrodollars back into &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/Opinion\/26\/05\/52823584\/how-iran-engineered-a-global-liquidity-crisis-the-bond-market-meltdown?utm_source=benzinga_taxonomy&amp;utm_medium=rss_feed_free&amp;utm_content=taxonomy_rss&amp;utm_campaign=channel\" alt=\"How\" iran engineered a global liquidity crisis--the bond market meltdown>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This past week saw global sovereign debt markets absolutely dump. Here&#8217;s how it might get a lot worse. Bond Yields Soar Friday saw global sovereign debt markets in free fall. Yields spiked across the board-\u00a0not because of some sudden inflation panic, but because of a much deeper, more structural force at work. The trigger? The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-96195","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/96195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=96195"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/96195\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=96195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=96195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=96195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}