Fed Hike Fears Spark Global Market Selloff Amid Iran Strike

The global markets saw significant losses on Monday due to fears of an imminent US interest rate hike and the US military strike on Iran's Larak Island.

Federal Reserve Chair Kevin Warsh reinforced expectations of a rate hike at the Jackson Hole Economic Symposium, stating that further policy tightening could be necessary if inflation persists above the central bank's target.

This led to a 12 basis point increase in the two-year Treasury yield to 4.33% and pushed the probability of a Fed hike in September to approximately 60%,

The US military strike on Iran sent oil prices sharply higher, with Brent crude for December delivery jumping 5.6% to reach $90.95 per barrel.