Global bond sell‑off intensifies as oil prices rise above $107 per barrel

Crude oil prices surged 6% on Thursday, breaking the $107‑a‑barrel threshold as investors grew increasingly uneasy about developments in the Middle East. Traders cited advances by Houthi rebels along Yemen’s Red Sea coast, which threaten to disrupt Saudi crude exports, as the primary catalyst for the rally. The spike in oil prices coincided with a broad sell‑off of government bonds across major economies, pushing yields higher and raising the cost of borrowing for sovereign issuers.

The combination of rising energy costs and tighter credit conditions has amplified concerns about inflationary pressures worldwide. Analysts warned that sustained higher oil prices could feed into consumer prices, while the heightened borrowing costs may constrain fiscal flexibility for governments already grappling with elevated debt levels. Market participants will be watching both the geopolitical situation in the Red Sea and the response of central banks to gauge the trajectory of inflation and financial stability in the coming weeks.