Treasury yields climbed above 5.2%, reaching their highest levels since mid-2007, as renewed oil-price gains and stalled U.S.-Iran negotiations over the Strait of Hormuz revived inflation concerns. Brent crude had reached $107 a barrel and West Texas Intermediate rose nearly 4% to $95.89 after President Donald Trump rejected an Iranian proposal to reopen the waterway. Traders now assign nearly a 65% probability to a 25-basis-point Federal Reserve rate increase next month and a 53% probability to another move in December, following the Fed's 25-basis-point increase earlier this month. Investors are awaiting PCE inflation data and the jobs report, while strong economic data, worsening U.S. fiscal conditions and rising government debt have also added pressure to Treasuries. Gold fell 3.06% to $4,153.10 an ounce as higher real yields and a stronger dollar reduced demand for non-yielding bullion.