Stocks fall, bond rout deepens as US and Iran trade attacks

World markets declined on Wednesday following fresh U.S. airstrikes on Iranian military targets near the Strait of Hormuz. Oil prices surged to multi-week highs, intensifying worries about potential energy supply disruptions. The benchmark 10-year U.S. Treasury bond yield hit a three-year high, while the yen's yield surpassed a three-decade peak.

The U.S. dollar strengthened, aided by the hawkish tone from Federal Reserve Chair Kevin Warsh. Global stock indices fell, with MSCI's global stock gauge down 0.2 percent and the Eurozone's STOXX 600 decreasing 0.3 percent. South Korea's KOSPI dropped nearly 4 percent, while Japan's Nikkei 225 fell 2.9 percent.