Middle East Tensions Spark Global Market Volatility

The escalating Middle East tensions have sent shockwaves through global markets, causing a selloff in US government bonds and pushing stocks down. The yield on the US 30-year Treasury bond rose to its highest level in almost 20 years, reaching 5.3264%.

Oil prices also climbed for the third consecutive day, with Brent crude hitting its highest since late last month. This surge in oil prices has added to inflation worries and put pressure on stocks.

Traders now see a lower chance of a hike at the Federal Reserve's September meeting, down from 48.4% to 36.6%, according to the CME FedWatch tool.