U.S. Treasury Secretary Scott Bessent conveyed to Russian Finance Minister Anton Siluanov that no sanctions relief or fresh agreements with Moscow can be achieved as long as the war in Ukraine persists, a person with knowledge of the situation reported. The two officials convened on the sidelines of a Group of 20 finance leaders’ summit in Asheville, North Carolina. Bessent’s comments coincided with Siluanov’s inaugural on-site participation at the gathering since Russia’s 2022 invasion of Ukraine, which prompted criticism from European counterparts. European nations have signaled intentions to broaden sanctions to further tighten the economic screws on Moscow. The uncommon encounter highlighted Washington’s openness to reengaging in high-level diplomatic dialogue with Moscow, even as European allies remain committed to isolating the nation throughout the ongoing war. During their discussion, Bessent emphasized to Siluanov that “nothing is possible until the war is over,” as the Russian minister raised other areas of shared interest, according to the source. Reuters initially disclosed the exchange. Axios reported that the conversation revolved around President Donald Trump’s peace framework for Ukraine and economic development, while Russia’s finance ministry characterized the dialogue as addressing financial collaboration between the two countries within the G20 context. Moscow’s unexpected re-entry into the negotiations elicited disappointment among European officials, who balked at appearing alongside Siluanov in the customary G20 group photograph, which was ultimately captured without the Russian minister.

Government bonds sold off globally on Wednesday, extending a rout that has driven borrowing costs to multi-decade highs.

The yield on German 10-year bunds

The 10-year Treasury yield

Yields move in the opposite direction to prices.

Global bonds are under pressure

Investors have been rattled by the resurgence of inflationary pressures, particularly as a fresh wave of conflict in the Middle East drives oil

Central banks around the world are meanwhile seen preparing for a string of interest rate hikes this month, typically bad news for bonds. Federal Reserve Chair Kevin Warsh struck a hawkish tone in his closely watched speech in Jackson Hole last week, while the Bank of Japan is seen potentially raising rates to support a falling yen, and markets are fully pricing a rate hike by the European Central Bank following the release of EU inflation data on Tuesday.

Longer-maturity debt yields are also rising

“The fundamental tenets [in markets] are a little shakier than they’ve been,” George Maris, chief investment officer and global head of equities at Principal Asset Management, told CNBC’s “Squawk Box Europe” on Wednesday.

“And if the cost of money, the cost of risk rises, that’s what you’re seeing with the global rise in yields everywhere.”

“You look at debt levels around the world that are at stratospheric levels and increasing. The solutions for curing that do not seem readily apparent … I don’t see the political willingness to tackle this anywhere. I think that’s a problem,” Maris added.

“I think the fact that this is all happening in a period of healthy global economic growth, that you’re seeing the debt levels pick up, means that we’re in a more precarious place for if there’s disturbance.”

Two oil tankers struck naval mines while attempting to transit the Strait of Hormuz, Iran’s Revolutionary Guards said on Wednesday, after the Iranian military made retaliatory strikes on U.S. bases in the Middle East.

In a statement shared by state media, the influential hardline military group said the vessels had been disabled and forced to disembark their crew after ignoring warnings to take an “illegal route” through the Strait.

President Donald Trump said he was “not trying to force Iran to the bargaining table,” as U.S. forces completed a fresh round of strikes against the Middle Eastern country on Tuesday stateside.

The latest exchange of military strikes came as the Financial Times published an investigative report claiming Russia was secretly helping Iran to develop advanced supersonic cruise missiles capable of threatening U.S. aircraft carriers and other warships in the region.

In a Truth Social post, Trump reiterated that the U.S. has “almost total control” over the Strait of Hormuz, while adding that Tehran’s economy was collapsing.

He said that Iran was just “playing out the inevitable” and asked, “When are the Iranian people going to rise up and fight?”

In a post on X, the U.S. Central Command said that it struck air defense and communications sites, and radar systems in Iran, in retaliation against the “recent attempted attacks” by the country against commercial shipping in the Strait of Hormuz and against American service members.

Tehran has responded to American strikes, targeting U.S. ally Jordan. The country’s armed forces said that it was targeted by a missile attack that originated from Iranian territory.

A spokesperson for Jordan’s armed forces said on X that 10 of 13 missiles were intercepted by the country’s air defense systems, with the three fell in remote areas. No injuries or deaths were reported.

Bahrain’s armed forces said on Instagram Wednesday that they had intercepted and destroyed “treacherous Iranian air strikes today,” following an earlier announcement by Bahrain’s interior ministry of “an alert of potential threat.”

U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Tuesday that the Strait of Hormuz will become a “worthless piece of water” in two years, arguing that oil will instead flow across land pipelines and bypass the Strait.

Strikes on Sunday were the first time that the U.S. and Iran traded attacks in about a month, and after the Trump administration said it was launching an “economic D-Day” on Tehran’s backers.