Oil prices rise, bonds fall on Middle East tensions

Oil prices rose and global bonds moved higher on Monday as tensions in the Middle East increased. Brent crude, the international benchmark, rose as much as 1.77 percent to $111.16 a barrel, its highest level in nearly two weeks, before easing to $110 a barrel.

The increase followed an attack on a nuclear power plant in the United Arab Emirates and reports that peace talks between the United States and Iran had stalled in the sixth week of a ceasefire. Officials said exchanges were continuing through a Pakistani mediator.

Bond market movements Global bonds were choppy, with the benchmark 10-year U.S.

Treasury yield reaching 4.631 percent, its highest level since February 2025, before settling at 4.599 percent. The volatility in UK government bonds coincided with political uncertainty as traders anticipated a possible leadership challenge later this year. The UK chancellor and other G7 finance ministers gathered in Paris on Monday to discuss the economic impact of the Middle East conflict.

Stock market reaction Stock markets opened lower in Europe on Monday, with the Stoxx Europe 600 dropping 0.7 percent. The UK’s FTSE 100 index was broadly flat. In Asia, Japan’s Nikkei fell about 1 percent, Hong Kong’s Hang Seng index fell 1 percent, and Shanghai’s SSE Composite slipped 0.1 percent. South Korea’s Kospi closed 0.3 percent higher.