Global Markets React to Gulf Drone Attacks with Rising Oil Prices and Bond Yields
Global share markets experienced a downturn on Monday following drone attacks in the Gulf region, which led to increased oil prices and bond yields. A drone strike resulted in a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia intercepted three drones. These events have heightened inflation concerns, particularly as the Strait of Hormuz remains largely closed, affecting 20% of the world's oil and gas trade. Brent crude oil prices rose by 1% to approximately $110.50 per barrel, and U.S. crude increased by 1.2% to $106.72 per barrel. The situation has also impacted global bond markets, with U.S. 10-year note yields reaching a 15-month high of 4.631%. The geopolitical tensions are set to be discussed by G7 finance ministers in Paris, although differences may challenge the group's unity. 
