Strait of Hormuz Declared Open, Bond Yields Drop Fast
As seen on the 24/7 Wall St. homepage on August 18, 2026.
Treasuries had been selling off on the risk of a closed Hormuz, so Cramer's read is that the war premium in yields is coming out fast on one presidential comment.
President says Strait of Hormuz is open. Bonds go positive
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Treasuries had been selling off under a war premium tied to fears of a Strait of Hormuz closure, pushing yields higher as investors demanded more compensation for geopolitical risk. A single presidential statement that the strait is open sent bonds into positive territory.
Jim Cramer's read, posted on August 18, is that the yield move is happening fast, meaning the market had been pricing in a serious risk that is now being unwound in real time. That kind of rapid reversal in the bond market tends to ripple quickly into rate-sensitive equity sectors.
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The Strait of Hormuz is one of the world's most critical chokepoints for oil shipments, so any threat to its passage feeds straight into the yield curve. Traders watching that corridor were effectively watching the bond market too.
With the war premium coming out of yields, investors who were positioned defensively around a prolonged closure now face a fast-moving reassessment. How durable the bond rally proves depends entirely on whether the presidential comment holds as policy on the ground.