Iran's Parliament Speaker Mohammad Bagher Ghalibaf decided Thursday was a good day to poke the bear. With the 10-year Treasury yield sitting above 5.1%, he took to X to mock the Trump administration, warning that Iran could drag the U.S. back to "1970s rates," complete with high gas prices and diesel shortages.

Iran Threatens 1970s-Style Rates

“Happy 5.1% 10Y America 🎉. Mashallah,” Ghalibaf posted. He added that the U.S. should “celebrate” because the 5.1% yield on ten-year Treasury bonds will be the base rate, or the floor, over the next two years.

Why should anyone outside the bond market care? Because Treasury yields are the reference point for pretty much every loan you'll ever take out. When yields climb, mortgages get more expensive, since banks tack their profit margins onto rates that track yields. Higher rates mean higher monthly payments. Auto loans work the same way: banks may spend more to fund them, and credit card payments climb as banks' borrowing costs surge.

“You wanted Iran dragged back to 1970s?” Ghalibaf said, adding that Iran was not for “arrogant amateurs.” He then warned that Iran would return the U.S. to 1970s rates, “plus high gas prices, diesel shortages and bell-bottoms. Enjoy the nostalgia!”

Ghalibaf was referring to the 1970s crises, when, in 1973, oil-producing nations announced an oil embargo against Western countries for their support of Israel during the war between Israel and a coalition of Arab countries led by Egypt and Syria. The 1979 Iranian revolution also triggered oil shortages.

Iran War Updates

The news comes as reports emerged that Iran's Foreign Minister Abbas Araghchi, on the sidelines of the United Nations General Assembly (UNGA), conveyed that Iran wanted to make a deal and stressed the U.S. return to the conditions laid out in the June Memorandum of Understanding (MoU) signed between the countries.

Meanwhile, Bessent had stressed that the flight restrictions, part of the Operation Economic Outcast, were working, touting an 80%-90% reduction in external flights in Iran. Bessent had earlier threatened that countries and institutions supporting Iran would be kicked out of the dollar system by the U.S. and sanctioned.

Following Bessent's comments, Iran's Security Chief Mohsen Rezaee warned neighboring countries not to participate in the restrictions, adding that the Strait of Hormuz will remain closed until the U.S. agrees to return to the conditions laid out in the MoU and that the Iranian government had sent the conditions over to the Trump administration via intermediaries.