Zoe Callow The Iran oil shock just jumped asset classes. A global bond selloff is deepening as rising energy prices stoke inflation fears, Reuters reports. Asian equities are sliding too, as the same conflict keeps pushing crude higher, Seeking Alpha reports.
Crude is still trading above $90 a barrel, where it landed after the Strait of Hormuz shutdown, India News Network reports.
A bond selloff pushes yields up. Higher yields mean it costs governments and households more to borrow — mortgages, car loans, sovereign debt, all of it.
Asian stocks sliding on the same trigger is the tell that this stopped being an energy-desk story. It's investors repricing risk in markets that have nothing to do with the conflict zone.
What to watch: whether central banks treat this as a temporary energy spike or start responding to it as embedded inflation. That call decides whether this is a bad week or a bad year.
