Global Bonds Sell Off as Middle East War Inflation Fears Fuel Rate Hike Bets

📉 BONDS — Central banks are being drafted into a war nobody declared on them. 📌 LOOK CLOSER: Rising energy costs from Hormuz are now transmitting into rate expectations — a second-order hit that tightens financial conditions globally without a single central bank vote. Higher rates mean higher sovereign borrowing costs, squeezing governments already absorbing energy subsidies. Europe is most exposed: stagflation risk rises as the ECB faces inflation it cannot bomb away.