Story perspectives

Iran Conflict Disrupts Global Bond Markets, Raises Rates

3/25/2026

Summary

Story summary

The Iran conflict has disrupted global bond markets, with UK 10-year yields briefly above 5% for the first time since 2008, raising Bank of England rate-hike expectations.
The surge complicates UK fiscal management amid political challenges.
In the United States, Treasury yields rose, weighing on stocks and raising borrowing costs.
Asian equities rose on hopes for de-escalation in the Middle East, while analysts warn the crisis could heighten regional vulnerabilities.

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Story summary

The Iran conflict has disrupted global bond markets, with UK 10-year yields briefly above 5% for the first time since 2008, raising Bank of England rate-hike expectations.
The surge complicates UK fiscal management amid political challenges.
In the United States, Treasury yields rose, weighing on stocks and raising borrowing costs.
Asian equities rose on hopes for de-escalation in the Middle East, while analysts warn the crisis could heighten regional vulnerabilities.