Global bond markets have plunged amid renewed hostilities in the Gulf region, with traders reacting to the spillover from energy-market volatility.
The selloff reflects growing concerns over the potential for prolonged disruption to oil supplies and its inflationary implications.
Analysts warn that the situation could further strain global markets, particularly if the conflict leads to a sustained increase in oil prices above $100 a barrel.
The move has triggered a flight to safety, with capital shifting toward traditionally stable assets.
This reaction underscores the interconnectedness of energy and bond markets, where rising oil prices and geopolitical tensions are amplifying inflation fears.
The renewed escalation between the U.S. and Iran has undermined recent optimism about a durable peace agreement.
Analysts warn that the situation could further strain global markets, particularly if the conflict leads to a sustained increase in oil prices above $100 a barrel.