Germany’s 10-year Bund yield rose to 3.198%, moving back toward the 15-year high above 3.2% reached in July, as higher oil prices revived inflation concerns. Crude strengthened after U.S. President Donald Trump hardened demands on Iran, clouding the chances of an agreement to reopen the Strait of Hormuz (a key global oil shipping route). Trump called for compensation from Tehran, while Iran repeated its demand for reparations in negotiations aimed at ending the conflict. In Europe, the European Central Bank kept rates unchanged in July after a 25-basis-point hike (0.25 percentage point) in June, its first increase in three years. German government bonds have outperformed U.S. Treasuries as investors increasingly favor European markets on improving economic momentum and clearer ECB policy, while uncertainty over Federal Reserve policy and the U.S. fiscal outlook has added to the appeal of European debt.