Oil Jumps, Bonds Slide as Middle East Conflict Rattles Markets

Stocks fell and bond prices dropped on Monday as escalating tensions in the Middle East pushed crude oil prices higher. The move signals growing investor concern over supply disruptions in a key producing region. The rise in oil comes as markets weigh the risk of a wider conflict. Higher energy costs typically feed into inflation, which can pressure central banks to keep interest rates elevated. That dynamic weighed on government bonds, sending their prices down and yields up. At the same time, major stock indexes retreated. Investors moved away from riskier assets, favoring cash and gold as safe havens. In the United States, new job-market data offered a mixed picture. While some sectors showed steady hiring, other indicators pointed to cooling demand for labor. The report did little to clarify the Federal Reserve’s next move on interest rates, leaving traders to focus on the geopolitical headlines. For now, the market’s direction hinges on events in the Middle East. Any further escalation could push oil higher and deepen the sell-off in stocks and bonds.