Global stocks fall as oil surge drives bond yields higher

Aug 30, 2026 23:30 (22d ago)

Global equities fell as renewed U.S.-Iran hostilities lifted Brent crude to $92 and intensified a worldwide government-bond sell-off.
The FTSE 100 dropped 1% to 10,725.6, the S&P 500 fell 0.7% and the 10-year gilt and Treasury yields reached 5.21% and 4.79%, respectively.
Higher energy costs and borrowing rates increased pressure on policymakers, with markets assessing possible Federal Reserve and Bank of England action and the UK’s October 28 Budget.

Global markets weakened on September 1 as renewed U.S.-Iran hostilities disrupted expectations for shipping through the Strait of Hormuz, lifted Brent crude to $92 a barrel and intensified a worldwide government-bond sell-off. The FTSE 100 fell 1% to 10,725.6 points by 1019 GMT, the FTSE 250 dropped 1.9%, the S&P 500 declined 0.7%, the Dow fell 299 points, or 0.6%, and the Nasdaq lost 1.4% as of 9:33 a.m. Eastern time. The UK 10-year gilt yield reached 5.21%, its highest level since 2008, while the 10-year Treasury yield rose to 4.79%, its highest since January 2025. Markets priced at least 32 basis points of Bank of England rate increases by year-end and a heightened possibility of a Federal Reserve increase after Kevin Warsh’s Jackson Hole remarks. Investors also assessed higher energy costs, inflation, government borrowing, UK fiscal pressures ahead of Chancellor John Healey’s October 28 Budget, and upcoming U.S. inflation and employment data.