US-Iran Tensions Send Global Share Markets Reeling

Global share markets declined on Monday as tensions escalated between the US and Iran, boosting oil prices.

Brent futures rose by 1.4% to $89.38 a barrel after a US drone strike hit two of Iran's launchers on its Larak island, leading to retaliation from Iranian forces targeting US troops in Jordan.

The elevated risk of inflation kept bond markets on edge following Federal Reserve Chair Kevin Warsh's emphasis on fighting inflation at the central bank's recent meeting.

Markets responded by increasing the likelihood of a September rate hike to 57%, which caused short-term Treasury yields to surge and flatten the yield curve.