WS #15453
Oil prices have surged past $100 a barrel as attacks in the Strait of Hormuz and Houthi strikes on Saudi infrastructure heighten fears of supply disruption. This geopolitical escalation is driving a secondary macro effect: a global bond sell-off with the 30-year US Treasury yield hitting its highest level since 2002. The combination of energy inflation and rising long-term rates is forcing a deleveraging of risk assets, particularly impacting sectors sensitive to borrowing costs and consumer demand.
Geopolitical Energy Shock
Oil prices have surged past $100 a barrel as attacks in the Strait of Hormuz and Houthi strikes on Saudi infrastructure heighten fears of supply disruption. This geopolitical escalation is driving a secondary macro effect: a global bond sell-off with the 30-year US Treasury yield hitting its highest level since 2002. The combination of energy inflation and rising long-term rates is forcing a deleveraging of risk assets, particularly impacting sectors sensitive to borrowing costs and consumer demand.