Oil prices surge on Iran war, inflation fears trigger global bond sell-off, yields spike

Rising oil prices tied to the Iran conflict are fueling persistent inflation fears that have sparked a coordinated global bond market sell-off, pushing Treasury, gilt, and sovereign yields to multi-year highs. The selloff is pressuring equities, with S&P 500 and Nasdaq futures falling 1%, and forcing investors to recalibrate growth-versus-inflation risk for the rest of 2026.