Global financial markets reacted on Monday to renewed surges in oil prices and geopolitical tensions in the Middle East, continuing the economic ripple effects first seen after the Iran conflict and Hormuz blockade earlier this year.
The Middle East conflict has again sent oil prices surging. Investors fear worsening public deficits and are demanding higher yields on sovereign debt.
In France and Germany, government bond yields rose sharply. The German ten-year yield reached 3.19 percent in the morning, a level unseen in fifteen years.
In Paris the CAC 40 opened sharply lower. Markets showed strong volatility after briefly hoping for a temporary exemption from oil sanctions on Iran, reported by Iranian media.
The situation remains fragile and interest rates stay elevated across many countries from Japan to the United States and from Britain to Italy.