Commerzbank research: Escalation of US-Iran hostilities has raised concern that
Middle East supply disruptions will persist, lifting oil prices. Higher crude is
Stoking inf and prompting expectations of tighter monetary policy, weighing on
Asian government bonds and triggering global bond and equity sell-offs. The
escalation increases the risk of prolonged disruption to energy shipments via
the Strait of Hormuz and reverses weeks of improving market sentiment on the
conflict.
