Brent crude rises to $110.50 and U.S. 10-year yields hit 15-month highs as drone attacks disrupt Gulf shipping lanes.
Global stock markets fell Monday as escalating tensions in the Gulf sent oil prices and bond yields higher, reigniting inflation fears. Brent crude climbed 1% to $110.50 a barrel, while U.S. crude rose 1.2% to $106.72, with futures contracts for September and December breaching key levels amid supply concerns.
The Strait of Hormuz, which typically handles 20% of global oil and gas trade, remains largely closed following drone attacks on UAE and Saudi infrastructure. U.S. 10-year Treasury yields reached a 15-month peak of 4.631%, reflecting worries over sustained energy-driven inflation.
G7 finance ministers are set to discuss the Strait’s blockade in Paris, though divisions may limit coordinated action. Markets are pricing in prolonged disruptions, with December oil futures hitting contract highs.