1037 GMT - Treasury yields rise while the dollar edges higher as oil prices gain on concerns about an impasse in U.S.-Iran negotiations to reopen the Strait of Hormuz. Higher oil prices prompt markets to increase bets on the Federal Reserve raising interest rates in September. Wednesday's U.S. inflation data could prove decisive for these expectations, Empire FX analyst Crispus Nyaga says in a note. "A firmer reading could extend the rise in yields and support the dollar, while a softer print could revive doubts over a September move and weigh on the currency, with volatility likely across currency and bond markets." The 10-year Treasury yield rises 2.9 basis points to 4.727%, according to Tradeweb. The DXY dollar index rises 0.1% to 99.851.