Finance

Global energy markets reacted sharply to the escalating friction between Washington and Tehran, driving Brent crude futures up by over 5% to settle around $78 per barrel. The surge followed U.S. military strikes hitting numerous targets inside Iran in response to attacks on commercial shipping routes. Analysts warn that the disruption of key transit corridors like the Strait of Hormuz could recreate persistent upward pressure on energy costs.

Global debt markets faced a significant selloff as climbing oil prices rekindled consumer price concerns, sending government bond yields higher. The yield on the benchmark 10-year U.S. Treasury note advanced to 4.567%, reaching its highest mark since late May. Concurrently, short-term two-year yields climbed toward their recent peaks as market participants recalibrated the likelihood of higher-for-longer Federal Reserve interest rates.

Digital assets trended lower as escalating geopolitical tensions prompted institutional and retail investors to pull back from high-risk holdings. Bitcoin slipped by nearly 2%, trading down into the $62,000 range, while Ethereum and other prominent tokens mirrored the contraction. The broader downturn sparked over $330 million in digital asset liquidations within a 24-hour window, heavily impacting bullish long positions.