Middle East War Sparks Global Market Turmoil

Global financial markets reacted sharply to the escalating Middle East conflict, now in its fourth day. Stocks and sovereign debt experienced widespread sell-offs across continents. Oil prices climbed further, with Brent crude surpassing $80 a barrel, and natural gas prices surged dramatically following production halts in Qatar.

These market movements have amplified concerns about a sustained inflation shock. The potential for higher interest rates to persist for longer is now a significant worry for investors. U.S. Treasury yields edged higher, while European and Asian government bond yields jumped, indicating a shift away from traditional safe-haven assets.