Oil Prices Soar, Yields Skyrocket Amid Iran Conflict Fears

The global economy is facing increased uncertainty as Brent crude prices surpass $107 per barrel, pushing yields and the US dollar higher while weighing on equities.

This surge in oil prices reflects growing concern over the Iran conflict and its potential to prolong into next year, with a senior Iranian official stating that Tehran will not back down from the US naval blockade.

The ECB's decision to hike rates by 25 basis points to 2.50% and its hawkish commentary have added to the inflation concerns, with officials now seeing October as a potential month for further tightening.