Brent Crude Surges to $96 Amid US-Iran Conflict and Global Bond Market Sell-Off

The global economy is experiencing a surge in volatility as Brent crude oil prices reached $96 per barrel, while the US-Iran conflict escalates. The price of Brent crude has been rising for three consecutive sessions, with a 4.6% surge on Tuesday. This increase is attributed to the risk of extended disruption to crude flows due to the ongoing tensions between the two nations.

The global bond market is also experiencing significant upheaval, with bond yields surging to multi-year highs across most G-7 nations. The US-Iran conflict and subsequent rise in crude oil prices are major triggers behind this sell-off, but not the only ones. The global cost of capital remains high, adding pressure to investors who are willing to pay for growth.

European leaders have rallied behind Germany after confirmation of a Russian attack on Leipzig airport. Poland's Prime Minister Donald Tusk and Italian Prime Minister Giorgia Meloni were among those expressing support for Germany. Meanwhile, the price of gold extended its losing streak, falling 0.98% to $4,353.10.