Bond Yields Leap as Oil Surges Above $100 a Barrel on Middle East Conflict

Global bond yields have leaped to multi-year highs and stocks in the US and Europe slumped on Thursday, as oil surged above $100 a barrel due to concerns about prolonged conflict in the Middle East.

The price of U.S. crude futures joined Brent above $100 a barrel, with a 6% increase in oil prices.

U.S. President Donald Trump added to investors' inflation worries by promising to pay every U.S. adult $5,000 if his party wins November's midterm elections.

The European Central Bank raised interest rates for the second time this year on Thursday to quell an energy-driven inflation rise and warned that price pressures could prove lasting, fueling bets on more policy tightening as soon as October.