Global Economic Issues: September 2, 2026

🗂Middle East Geopolitical Conflict Intensifies, US 10-Year Treasury Yield Surges and Global Stock Markets Decline As fears of renewed military conflict between the US and Iran spread, driving risk aversion, the yield on US 10-year Treasury notes saw a sharp increase. Major New York stock indices (S&P 500 -0.71%, Nasdaq -1.03%) all closed lower, reflecting the growing unease in global asset markets. 🗂International Oil Prices Break $90/barrel, Highlighting Inflationary Pressures Concerns over supply disruptions due to heightened tensions in the Strait of Hormuz pushed international oil prices above $90 per barrel. The market is increasingly wary that a prolonged surge in oil prices could impede the Federal Reserve's plans for interest rate cuts. 🗂Eurozone and Major Countries' Bond Yields Continue to Soar Fueled by high oil prices and escalating geopolitical risks, bond yields in major European countries, including Germany and the UK, also climbed consecutively. Concerns over prolonged high interest rates have led to a sharp cooling of investment sentiment across risk assets.