Soaring oil prices of above $108 a barrel after Houthi attacks on Saudi infrastructure stoke inflation fears

US government borrowing costs have risen to 5% for the first time since 2023 as soaring oil prices fuelled by the war in the Middle East trigger an intensifying sell-off in the global bond market.

The yield – in effect the interest rate – on 10-year US Treasury bonds hit the psychologically important threshold on Monday, on a day of renewed selling pressure on Wall Street as the global oil price reached $108 a barrel.