The UK 10-year gilt yield rose to 5.16% on Monday as investors awaited UK Chancellor John Healey’s first major speech before next month’s budget announcement. Oil prices moved toward seven-week highs after the U.S. struck three Iranian oil tankers over the weekend and destroyed one, while Tehran threatened a new restricted zone outside the Strait of Hormuz. Higher oil prices have helped drive the global bond selloff, leaving UK gilts particularly exposed. A closely watched REC survey showed UK firms increased full-time hiring in August for the first time in four years, data that will be monitored by Bank of England policymakers assessing labor-market strength. Lloyds data also showed UK house prices fell year-on-year for the first time since November 2023.