Saudi Pipeline Attacks Send Oil Prices Soaring, Fueling Inflation Fears

Global oil prices have surged above $108 a barrel following drone attacks on critical infrastructure in Saudi Arabia, forcing the closure of the kingdom's east-west crude pipeline. The attacks, attributed to Iran-linked rebels, have disrupted energy supplies from the Persian Gulf, pushing Brent crude to its highest levels in months.

The escalating tensions and supply concerns are reverberating through global markets. The rise in oil prices is intensifying worries about inflation, contributing to a significant sell-off in the bond market. The yield on 10-year U.S. Treasury bonds has breached levels not seen since 2007, reaching 5% for the first time since 2023, as investors grapple with the potential for sustained energy-driven price increases.