Oil prices rise and bonds wobble as Iran war stokes inflation fears
Oil prices increased due to rising tensions in the Middle East, particularly following an attack on a nuclear power plant in the UAE. This volatility in oil prices has raised inflation fears and led to fluctuations in global bond markets. Political instability in the UK, with expectations of a leadership challenge for Keir Starmer, has further contributed to uncertainty in the bond market.
- ▪Brent crude oil prices rose by as much as 1.77% to $111.16 a barrel amid Middle East tensions.
- ▪The 10-year US Treasury yield reached 4.631%, its highest since February 2025, before easing back.
- ▪UK bond yields were affected by political instability, with traders anticipating a leadership challenge for Prime Minister Keir Starmer.
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The volatility in UK government bonds was driven by political instability amid expectations that Keir Starmer will face a leadership challenge. Photograph: Robert Evans/AlamyView image in fullscreenThe volatility in UK government bonds was driven by political instability amid expectations that Keir Starmer will face a leadership challenge. Photograph: Robert Evans/AlamyOilOil prices rise and bonds wobble as Iran war stokes inflation fears Trump warning over peace talks drives up crude price as UK gilts hit by uncertainty over Starmer leadership Business live – latest updates Lauren AlmeidaMon 18 May 2026 04.55 EDTLast modified on Mon 18 May 2026 04.56 EDTSharePrefer the Guardian on GoogleOil prices rose and global bonds wobbled on Monday, as fresh tensions in the Middle East fed inflation…
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