Oil Prices Surge to 4-Year High, Bond Yields Jump to 5%

US 10-year Treasury yields briefly surpassed 5% for the first time since 2023 as oil prices surged. The war in Iran has drained US oil reserves and caused disruptions in tanker traffic. Brent crude oil prices jumped 4% to nearly $110 a barrel, the highest since May. This has pushed up inflation expectations and bond yields across Europe and Asia. The Federal Reserve is expected to hike rates on Wednesday, with other central banks likely to follow.