The U.S. Consumer Price Index (CPI) data, set for release today, is expected to significantly reflect the 'Iran premium' due to surging oil prices, potentially marking the highest monthly increase in nearly four years. This development has reignited inflation concerns as a key factor in asset pricing. In response, bond market traders have increased long positions in options betting on higher yields for 5-year and 10-year U.S. Treasuries. A J.P. Morgan survey indicates a decline in net bullish sentiment in the spot market, reaching a three-week low. Meanwhile, robust non-farm payroll data has shifted market focus back to energy cost pressures. Brent crude prices have surged nearly 60% year-to-date, reinforcing inflation expectations and tightening interest rate forecasts. The market currently sees only a 30% chance of a single 25-basis-point rate cut in 2026, down from earlier expectations of multiple cuts. If the CPI confirms an inflation rebound, expectations for fewer rate cuts will likely be reinforced.