Brent crude oil has surged back above the $100-a-barrel threshold, marking the first time the benchmark has held that level since May.

The breach of this psychological barrier has triggered a broad repricing of risk across global financial markets, with fixed-income investors reacting swiftly to the renewed inflationary pressure.

The spike in energy costs has sent shockwaves through the bond market, resulting in a global rout.

In the UK, borrowing costs soared as yields on government debt climbed sharply.

The move reflects a rapid shift in market sentiment, where the prospect of sustained high oil prices is forcing investors to demand higher compensation for inflation risk.

This cross-asset reaction underscores the sensitivity of current valuations to energy supply shocks.