Stocks & Bonds Fall as Hormuz Attacks Lift Oil - Europe Market Wrap

Stocks and bonds fell as escalating attacks on tankers in the Middle East pushed oil prices higher and revived concerns over inflation and interest rates. S&P 500 futures dropped 0.3% after the index closed at a record high, while Nasdaq 100 futures slid 0.7% as chipmakers weakened. Brent crude moved toward $102 a barrel after Iran targeted vessels in the Strait of Hormuz, dampening hopes that shipping conditions through the key waterway were improving. Treasuries also came under pressure, with the 10-year yield moving back above 5.30% ahead of a $39 billion auction. French bonds gave up an earlier rebound, pushing the country's 10-year yield premium over German debt to around 139 bps. The selloff in bonds followed warnings from IMF Managing Director Georgieva that rising yields have left governments that accumulated heavy debt facing mounting budget pressure. France remains a key example of those fiscal strains, with political gridlock limiting the government's ability to address them. The Dollar resumed gains as higher yields and haven demand supported the currency. The Euro traded near its weakest level against the Dollar since May 2025, while Bitcoin fell the most in a week and