Bond Selloff Drives Yields to 2008 Highs; Hormuz Tanker Attacks Escalate
· Business · Bloomberg, Arab News, arabnews
A global bond selloff pushed yields to their highest level since 2008, while US equity futures and sovereign debt slid as higher oil prices fuelled inflation fears and bets that central banks will raise interest rates at their September meetings. Two oil supertankers were struck by projectiles near the Strait of Hormuz, escalating fears of a supply disruption in one of the world's most critical shipping lanes. The combination of surging crude and rising yields rippled across asset classes, with traders pricing in tighter monetary policy from major central banks. The attacks on the tankers come amid heightened tensions in the Gulf, a region responsible for a significant share of global oil flows. Investors now face the dual risk of an energy shock feeding into already sticky inflation, which could keep borrowing costs elevated well into late 2026.
Why it matters
Indian consumers and markets face direct fallout — a sustained oil price spike would push petrol and diesel costs higher, worsen the inflation print, and reduce the odds of an early RBI rate cut, keeping loan EMIs and bond yields elevated.
Read the original report — Bloomberg
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