Germany's 10-year Bund yield rose above 3.6%, reaching its highest level since June 2009, as elevated energy prices revived concerns about inflation and hawkish central-bank signals lifted interest-rate expectations. Brent crude climbed above $106 a barrel as optimism over progress in US-Iran talks faded. Iran said it would not ease its conditions for reopening the Strait of Hormuz after President Trump rejected its proposal. Trump told Axios that Iran had "overplayed its hand" and that he expected negotiations to resume this week. Money markets are pricing roughly 100 basis points of European Central Bank (ECB) rate increases by late 2027. Investors in the United States and the UK have also increased bets on further monetary tightening after hawkish policymaker remarks and data showing resilient growth. Concerns about debt affordability in heavily indebted economies, particularly France and Italy, have added pressure to European bonds ahead of elections next year.