President Donald Trump declared on March 26 that he would suspend attacks on Iran's energy infrastructure for 10 days, establishing a new deadline until April 6 as negotiations continue. Initially, the news seems to bring relief. However, the markets reacted differently.
The bond market reacted expressively. The yield on the 10-year U.S. Treasury rose to about 4.42%, signaling that investors are now projecting higher inflation and tighter financial conditions.
This change weighs more than the announced suspension. This means that the cost of credit is becoming higher across the economy.
The bond market is flashing red.
After a brief intermission on hopes that peace talks with Iran would progress, the 10Y Note Yield is up to 4.42%.
Mortgage rates are up to a fresh 7-month high, markets are now pricing in potential rate HIKES, and the S&P 500 has erased -$800… https://t.co/WXib686zxd pic.twitter.com/SntfadrivQ
— Adam Kobeissi (@TKL_Adam) March 26, 2026
This is the point at which the real impact affects Americans in their daily lives.
Higher Treasury yields quickly reflect in higher mortgage rates, auto loans, and credit card costs. Mortgage rates have already approached recent highs, making it harder for families to purchase homes or renegotiate debts.
Meanwhile, the war in Iran keeps oil prices high, increasing the cost of fuel, transportation, and basic goods.
Terrifying economic warning on live TV. A financial expert predicts oil could hit 140 dollars a barrel because 15 million barrels a day are missing from the market due to the Strait of Hormuz closure. The US economy cannot survive this. The war is destroying us. pic.twitter.com/pRUTO2CJNR
— Furkan Gözükara (@FurkanGozukara) March 26, 2026
In simple terms, families are facing double pressure: spending is increasing while the cost of credit is rising.
The Federal Reserve is in a difficult situation. Energy-related inflation risks make the possibility of interest rate cuts less likely, even in the face of slowing growth.
The markets have already begun recalculating expectations, reducing the projection of interest rate cuts and making financial conditions even tighter.
This pressure is already noticeable in the stocks.
The S&P 500 lost hundreds of billions in value in a single day, while technology sector indices fell even more rapidly. Higher interest rates reduce company valuations and limit business investment and expansion capacity.
The crypto markets also feel the effects. Bitcoin and major tokens follow the trend of higher-risk assets. When yields rise and liquidity decreases, investors tend to retreat from the most volatile assets first.
The suspension announced by Trump may have delayed an escalation, but it did not restore confidence.
For now, the message from the markets is clear: the risk of war has shifted from the battlefield to the economic sphere, and the population will soon feel the consequences.
The article Trump's Pause in the Conflict with Iran Could Weigh on Americans' Pockets was first seen on BeInCrypto Brazil.