US-Iran Tensions Spark Global Market Sell-Off and Bond Yield Surge
Global markets are experiencing volatility due to rising tensions between the US and Iran. The latest round of airstrikes by the US on Iranian military targets near the Strait of Hormuz has sent oil prices surging to five-week highs.
Brent crude futures rose 0.6% to $95.18 a barrel, stoking inflation concerns and fueling a global bond selloff.
Stock markets worldwide are suffering as investors flee risk amid surging oil and bond yields. The pan-European STOXX 600 fell 0.3%, while South Korea's KOSPI dropped almost 4% and Japan's Nikkei lost 2.9%.
The UBS Global Wealth Management strategist Kiran Ganesh attributed the increase in energy prices to additional upward pressure on bond yields, saying 'stocks had been quite resilient to the increase in yields but at some point the faster rate of increase does start to put some pressure on equity markets.'