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Oil decline boosts stocks and lowers bond yields, Mohamed A. El-Erian notes

Oil decline boosts stocks and lowers bond yields, Mohamed A. El-Erian notes
Oil drops after U.S.-Iran Hormuz deal

Mohamed A. El-Erian, president at Queens' College, University of Cambridge, comments on the oil market's reaction to news that the U.S. and Iran have reached a deal to reopen the Strait of Hormuz.

El-Erian highlights that oil prices dropped 5 percent following the announcement, which has provided renewed momentum for stock markets and resulted in falling government bond yields.

El-Erian has also commented on major shifts in global reserves. He recently noted that the share of gold in official holdings overtook both the euro and U.S. Treasuries at the end of 2025. In a separate update, he flagged increasing rollover risks as U.S. public debt climbs near record highs.

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