Oil rose to $100 a barrel for the first time since May, reflecting growing market anxiety over the security of global energy supplies. The move came as attacks in the Red Sea increased concerns that shipping routes and crude flows could face further disruption.
The jump in prices has also revived worries about inflation. More expensive oil can feed into transport, production and consumer costs, raising the risk that price pressures could strengthen again in economies that have been trying to bring inflation under control.
That inflation concern is adding strain to bond markets. When investors expect higher inflation or a longer period of elevated interest rates, bonds can come under pressure as yields rise and prices fall.
The latest move in crude highlights how quickly geopolitical tensions can ripple through wider financial markets. With supply risks back in focus, investors are watching both energy markets and government debt for signs of deeper volatility.
