The UK 10-year gilt yield fell to around 5.0%, tracking lower US Treasury yields as investors weighed geopolitical risks and the inflation outlook. Attention remains on the Middle East, where the threat of a prolonged conflict continues to cloud the path for prices even though energy markets began the week relatively calmly. Brent crude, while below its July peak, is still about 45% higher since the start of the year, keeping pressure on inflation expectations. The Bank of England held interest rates steady in July, and Governor Andrew Bailey said the disinflation process was still on track despite external risks. Markets are now turning to this week's UK inflation data, with headline inflation seen rising to a four-month high while core inflation is expected to ease. In the US, investors have further reduced bets on a September Federal Reserve rate hike. Tensions also stayed elevated after Iran called on Washington to accept defeat and President Donald Trump warned of persistently high fuel prices.