U.S. Treasury yields rose on Tuesday as President Donald Trump again warned the U.S. would strike Iranian civilian and energy infrastructure if Tehran did not agree to reopen the Strait of Hormuz before a looming deadline.

The 10-year Treasury yield — the benchmark for U.S. government borrowing — was more than 1 basis point higher in early trade, at 4.3466% by 3:40 a.m. E.T.

Yields on the 2-year Treasury note, which are more sensitive to short-term Federal Reserve rate decisions, were also up by 1 basis point, at 3.8622%. The 30-year bond yield, meanwhile, rose 1 basis point, reaching 4.9060%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

The rise in the cost of borrowing followed President Donald Trump’s repeated threat to bomb Iranian infrastructure, including power plants and bridges, if Tehran did not reopen the Strait of Hormuz by 8:00 p.m. ET on Tuesday.

President Trump said it was “highly unlikely” he would extend the deadline further, and warned of “the complete demolition” of Iran’s critical infrastructure should a deal not be reached.

Iranian officials have rejected plans for a temporary ceasefire and have instead called for a permanent end to the conflict.

Energy prices have notched higher as Tuesday’s deadline approaches. Brent crude, the global benchmark, rose 1.4% in early dealmaking, reaching $111.27 a barrel. U.S. West Texas Intermediate was last seen 2.1% higher at $114.81.

The rally in U.S. Treasurys came after yields had steadied on the back of a more positive-than-expected nonfarm payrolls data published on Friday.

Several Treasury officials will be speaking on Tuesday. Chicago Federal Reserve president and CEO Austan Goolsbee will be speaking at the Detroit Economic Club on Tuesday. On Monday, Goolsbee said inflation remains a greater challenge for the U.S. economy than employment. Federal Reserve vice chair Philip Jefferson will also speak later on the outlook for the economy and labor market.

Investors will be monitoring U.S.-manufactured durable goods orders data releases for February, which are expected to come in lower than the flat print for January.

U.S. President Donald Trump on Monday said he would order the military to postpone strikes on Iran’s power plants and energy infrastructure for five days following talks with Tehran’s authorities.

He told CNBC’s Joe Kernen in a phone call shortly after the post that “we are very intent on making a deal with Iran.”

However, Iranian state media, citing an unnamed “senior security official” in a post on Telegram countered Trump’s description of conversations, saying direct or indirect talks have not taken place between Washington and Tehran.

“There is been no negotiation and there is no negotiation, and with this kind of psychological warfare, neither the Strait of Hormuz will return to its pre-war conditions nor will there be peace in the energy markets,” state media reported the official as saying.

Trump said earlier in a post on his Truth Social platform that the U.S. and Iran had “VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST.”

The U.S. president said these talks would continue through the week.

U.S. stock futures rallied and oil prices fell sharply on the news.

Speaking with Kernen, Trump said discussions with Iranian authorities had been very intense and that he remains hopeful something very substantive can be achieved.

The U.S. president also insisted on the same call that what is unfolding in Iran can be described as regime change, Kernen reported.

Trump’s comments come shortly after he had given Iran 48 hours to reopen the strategically vital Strait of Hormuz.

The narrow waterway is a key maritime corridor that connects the Persian Gulf and the Gulf of Oman. Roughly 20% of global oil and gas typically passes through it.

The U.S. president had issued a 48-hour ultimatum to Tehran on Saturday to reopen the Strait of Hormuz or face strikes on its power plants. The deadline had been due to expire on Monday evening in Washington.

Iran’s Parliament spokesperson Mohammad Baqer Qalibaf had said critical infrastructure and energy facilities in the Gulf region could be “irreversibly destroyed” should Iranian power plants be attacked.

— CNBC’s Anniek Bao contributed to this report.

Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

It’s the third week of the Iran War, and despite all the Trump administration’s claims of winning, U.S. President Donald Trump has called on other countries for help to secure the Strait of Hormuz over the weekend. Is the administration really “winning,” one might wonder?

Iran’s critical oil export hub Kharg Island is now in U.S. President Donald Trump’s sights, with Trump threatening strikes on the island’s oil infrastructure after hitting military targets on Friday.

That definitely won’t calm the oil markets that have seen U.S. crude futures topping $100 a barrel, despite plans for the largest coordinated release of crude from global stockpiles. On Monday, the U.S. president said to reporters on Air Force One that oil prices will come “tumbling down once its all over.”

The White House, meanwhile, plans to announce as soon as this week that multiple countries have agreed to help escort oil tankers through the Strait of Hormuz, U.S. officials told The Wall Street Journal. About a week back, Trump told CBS that he “couldn’t care less” when asked if he would want U.S. allies to offer him greater support.

Investors will also be focusing on key economic data out from China on Monday, with the world’s second-largest economy announcing retail sales, industrial output and urban investment data. 

But even in China, Trump looms large. The U.S. president could reportedly delay his meeting with Chinese President Xi Jinping, as he urges Beijing to help unblock the Strait of Hormuz. 

Away from the war and energy supply worries, the Oscars are currently underway, with KPop Demon Hunters winning the award for the best animated feature film. Netflix’s most-watched film ever is getting a sequel, it was confirmed on Friday. 

— Lim Hui Jie

Gulf states reported more damage to infrastructure over the weekend as Iran continues to attack regional allies in retaliation for ongoing strikes by U.S. and Israeli forces.

The United Arab Emirates said it was “dealing with incoming missile and drone threats from Iran”.

“UAE air defences are currently responding to incoming missile and drone threats from Iran,” the country’s Ministry of Defense said in a post on X.

It said its defenses were intercepting ballistic missiles while fighter jets were tackling drones and “loitering munitions”.

On Saturday evening, alarms rang out across Dubai and Abu Dhabi warning residents to “immediately seek a safe place” due to missile threats and CNBC’s team confirmed hearing a loud explosion.

A high-rise building in Dubai’s Marina area, 23 Marina, was hit by falling debris. According to Dubai’s Media Office, no one was injured, but authorities did confirm that “debris from an aerial interception fell onto a vehicle in the Al Barsha area, resulting in the death of a Pakistani driver.”

Also on Saturday, passengers waiting for flights at Dubai International Airport were ushered into train tunnels. Iran said it had struck an air base in the UAE.

Since the war started on Feb. 28, Iran has targeted several radar and air defenses in the Middle East — in Qatar, the U.A.E., Jordan, Bahrain, Kuwait and Saudi Arabia — in retaliation against U.S. and Israeli attacks, The Wall Street Journal reported, citing U.S. officials, military analysts and commercially available satellite images.

Bahrain said Sunday a drone attack struck a water desalination plant.

“Iranian aggression indiscriminately attacked civilian targets and caused material damage to a water desalination plant following a drone attack,” Bahrain’s Ministry of Interior said in a post on X.

In a statement to CNBC, Bahrain’s electricity and water authority, said the “Iranian attack on a water desalination facility has had no impact on water supplies or water network capacity”.

The country also said “blatant Iranian aggression” damaged a university building in the Muharraq area, injuring three people, as missile fragments fell.

Elsewhere, Kuwait said two fuel depots at its international airport were hit by drones, causing a “huge fire at one of them.

The country’s Public Institution for Social Security said its headquarters were targeted, resulting in “material damage” to the building.

Meanwhile, Israeli and U.S. attacks on Iran have continued through the weekend.

Israel said it struck several fuel storage complexes belonging to the Iranian Revolutionary Guard Corps.

“The strike significantly deepens the damage to the military infrastructure of the Iranian terrorist regime,” the Israel Defense Forces said in a post on X early Sunday.

As geopolitical tensions between the EU and the U.S. escalate, these charts show how reliant the continent is on American tech providers, despite pledges to become more independent.

Since returning to the White House last year, U.S President Donald Trump imposed tariffs on the continent and caused headaches and fear in Europe as he initially refused to rule out military action to acquire Greenland, a semi-autonomous Danish territory, before backtracking.

With the long-standing transatlantic alliance looking uncertain, European governments are increasingly moving to develop digital autonomy. Critics of Europe’s reliance on U.S. companies for digital infrastructure warn that U.S. law enforcement can request user data from American companies, regardless of where the data is stored, as part of the Cloud Act.

But tech providers from the other side of the Atlantic still dominate in Europe.

European cloud providers have been steadily losing ground to U.S. rivals over the past nine years, holding under 15% of the market in 2025, according to data from Synergy Research Group, a market analytics company.

“It will be incredibly difficult for European cloud providers to meaningfully reverse the market share trend,” John Dinsdale, the group’s chief analyst, told CNBC.

“This is a game of scale. In order to be a leading player, you have to be continually investing large amounts in research, service development, technical infrastructure, customer support and channel partners,” he added. “You also have to have the brand recognition and ability to operate globally or at least across multiple geographies.”

Amazon, Microsoft and Google control more than 70% of the European cloud market, while the European companies with the largest share of the market are German duo SAP and Deutsche Telekom, with 2% each, per Synergy data.

“If you were able to go back 10 years and rewrite history, maybe one or two European companies could and should have set out their stall to be a leading player in the cloud market, but they didn’t,” said Dinsdale.

Amazon gained a huge early mover advantage by acting first in the market, he said, adding that Microsoft and Google followed at a distance. “Oracle eventually got serious about the cloud and is now growing rapidly, and neocloud companies are targeting specific services with some success.”

While SAP commands the biggest share of Europe’s enterprise software market, at least 59% is held by U.S companies, according to data from a December report by the European Parliament, with Oracle and Microsoft controlling 18% and 10%, respectively. The enterprise software market data refers to Europe as a whole, including non-EU members such as the UK and Switzerland.

Many political leaders are now “looking at technology in a way to gain sovereignty,” SAP CEO Christian Klein told CNBC’s “Squawk Box Europe” on Friday, in terms of “not only where do we…

Venture capital firm Andreessen Horowitz has raised $15 billion to bolster bets across an array of areas including infrastructure, health and what the it calls “American Dynamism,” co-founder Ben Horowitz said in a blog post on Friday.

The bulk of the capital, $6.75 billion, will go toward a growth fund and two $1.7 billion funds, with one focused on apps and the other on infrastructure.

“At this moment of profound technological opportunity, it is fundamentally important for humanity that America wins,” Horowitz wrote. “There is no other country that comes close to giving everyone a chance to grab that opportunity and build. If America fails to win technologically, it will lose economically, militarily, geopolitically, and culturally. And the entire world will lose as well.”

Andreessen Horowitz is dedicating $3 billion to support other venture strategies and about $1.2 billion to fund American interests such as aerospace and defense, the post said. Some $700 million is going toward biotech and health investments.

The raise is equal to 18% of all venture capital dollars allocated in the U.S. last year, Horowitz said. It’s more than doubled the amount the firm raised in 2024.

Since its founding in 2009, Andreessen Horowitz has risen to become one of the most prominent venture capital firms, known for early investments in Facebook, Coinbase and Airbnb.

In recent years, the Silicon Valley-based firm has been betting big on defense tech, with investments in Palmer Luckey’s Anduril, Elon Musk‘s SpaceX and machine parts maker Hadrian.

The sector has benefitted from President Donald Trump’s ambitious plans to reindustrialize America’s military and manufacturing base. This week, the president also called for a $1.5 trillion defense budget next year.

Both Horowitz and co-founder Marc Andreessen supported President Trump in the 2024 election, though Horowitz later said he would be donating to Kamala Harris‘ presidential campaign.

WATCH: Tech themes to watch in 2026