Global financial markets are facing fresh pressure as rising energy prices, linked to renewed conflict in the Middle East, fuel concerns over inflation. Bond yields climbed sharply across major economies, with investors increasingly worried that higher oil prices could keep inflation elevated and delay interest-rate cuts.
Japan’s 10-year government bond yield reached 3%, its highest level since 1996. European markets also opened under pressure, while gas prices climbed amid concerns over energy supplies.
The developments are being closely watched by governments and central banks because prolonged energy-price increases could raise borrowing costs and affect economic growth worldwide.