{
  "id": 1687897,
  "title": "Global bonds, stocks jolted as Middle East tensions shatter market calm",
  "url": "https://urgent.news/2026/08/18/global-bonds-stocks-jolted-as-middle-east-tensions-shatter-market-calm-1687897",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T09:39:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/08/18/global-bonds-stocks-jolted-as-middle-east-tensions-shatter-market-calm"
  },
  "original_language": "en",
  "account": "Global bond and stock markets experienced significant turbulence following heightened tensions in the Middle East, according to market data. The US government bond market witnessed a steep decline, with 30-year Treasury yields soaring to a near two-decade peak as fears of an escalation in the conflict alarmed investors. Oil prices surged for the third consecutive day, reaching their highest level since late last month, due to pessimistic signals from both Washington and Tehran regarding the possibility of a swift resolution to the crisis. This market volatility demonstrated that tensions in the Middle East remain a critical risk factor, capable of impacting various financial assets, including oil, bonds, currencies, and equities. The recent easing of US economic data has dampened expectations of a Federal Reserve rate hike at the upcoming September meeting, reducing the probability of a rate increase to 36.6% from 48.4% a week prior. However, strategists caution that a mid-cycle adjustment could be necessary if the situation deteriorates. The yield on US 30-year Treasury bonds increased by 1.64 basis points to 5.3264%, its highest level in nearly two decades, while the 10-year Treasury yield rose by 1.59 basis points to 4.7399%. Similar pressure was observed in other major bond markets, with Japan's 10-year bond nearing a 3% threshold for the first time in decades, and European bond yields reaching multi-year highs. European stocks, as measured by the STOXX 600, fell by 0.52% to 652.99. On Wall Street, S&P 500 and Nasdaq 100 index futures declined by 0.54% and 1.05%, respectively. The MSCI global stock index suffered a 0.28% drop to 1,153.38. Elevated bond yields may negatively affect equities by diminishing their appeal and increasing borrowing costs for capital-intensive enterprises investing in artificial intelligence infrastructure. The CBOE Volatility Index, a measure of market fear, also reached its highest level in over a week, further underscoring the heightened uncertainty in financial markets. Analysts emphasize the importance of maintaining hedges against renewed oil and inflation volatility in light of the ongoing conflict. Investors are also eagerly anticipating the Federal Reserve's latest policy meeting minutes, which are expected to be released on Wednesday. Furthermore, the upcoming Federal Open Market Committee Jackson Hole symposium will be closely monitored for any insights into policymakers' interpretation of recent economic data.",
  "summary": "The yield on the US 30-year Treasury bond rose 1.64 basis points to 5.3264%, its highest in almost 20 years.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Global bonds, stocks jolted as Middle East tensions shatter market calm",
        "url": "https://urgent.news/2026/08/18/global-bonds-stocks-jolted-as-middle-east-tensions-shatter-market-calm",
        "published": "2026-08-18T09:39:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}