Global markets on edge as oil rally revives inflation and rate concerns.

Global financial markets came under pressure as oil prices surged up to 6% to around $78.8-$79 per barrel for Brent crude, driven by renewed Middle East supply concerns following fresh U.S. strikes on Iran. Government bond yields climbed sharply, with German and British two-year yields rising about 10 basis points and U.S. Treasury yields up around 5 basis points, as traders repriced inflation and rate expectations. Equity volatility spiked with the VIX jumping, while gold failed to attract safe-haven demand near $4,074 an ounce amid a stronger U.S. dollar and expectations of higher-for-longer rates from the ECB, Fed, and Bank of England.