US-Iran Tensions Spark Oil Price Surge and Bond Market Sell-Off

Oil prices surged on Tuesday after the US launched strikes against Iranian targets, while bond markets sold off amid rising concerns about inflation and fiscal debt.

The price of Brent crude oil rose 5.1% to $95.13 a barrel, with WTI hitting its highest level since June 11 at over $90 a barrel.

This sharp escalation in tensions between the US and Iran has sparked a sell-off in global bond markets, with the benchmark 10-year Treasury yield reaching its highest level since November 2023.

Federal Reserve Chair Kevin Warsh's hawkish comments last week have also contributed to rising expectations of a rate hike in September, which could exacerbate inflation concerns and put pressure on corporate profit margins.