NEW YORK, March 20 : Global shares fell for a third straight session while bond yields surged on fears that escalating Middle East tensions will drive oil prices higher and reignite inflation.
Iran attacked an oil refinery in Kuwait and Israel struck a Revolutionary Guards spokesman. U.S. officials announced plans to deploy thousands of troops to the region. Wall Street saw steep declines, with the Dow Jones Industrial Average dropping 0.59%, the S&P 500 falling 0.91%, and the Nasdaq tumbling 1.24%.
The yield on benchmark U.S. 10-year notes rose to 4.372%, its third consecutive weekly gain. Central banks globally signaled potential rate hikes amid renewed inflation concerns. Euro zone bond yields climbed, with Britain's 10-year gilt reaching its highest level since July 2008.
U.S. crude rose to $97.33 a barrel, while Brent advanced to $109.35. Natural gas prices surged in Europe by up to 35% after strikes impacted key infrastructure. The dollar index edged up 0.42%, but the greenback faced its first weekly decline in three weeks.
Fed officials warned the conflict complicates monetary policy, as inflation risks mount.