The UK 10-year gilt yield edged up to 5.2% as investors increasingly priced in further Bank of England rate increases amid renewed inflation concerns. Brent crude approached $100 a barrel, while UK natural gas prices climbed to their highest level since late 2022 as renewed US-Iran fighting and reports of a possible Iran-Oman agreement on shipping through the Strait of Hormuz added to market concerns. Persistent inflation and resilient economic growth are keeping central banks under pressure to maintain restrictive policies. LSEG data shows markets are fully pricing in a 25-basis-point Bank of England rate increase by December and a second hike by March 2027. Investors are also assessing the government’s commitment to fiscal discipline and restoring the UK’s credibility in international bond markets ahead of the Oct. 28 budget, alongside plans to use public institutions to attract private investment and boost regional growth.