Finance

International oil benchmarks broke out to multi-week highs after a temporary 60-day ceasefire agreement expired without structural progress toward a permanent peace deal. The resulting shift toward more aggressive military stances has triggered fears of prolonged energy supply disruptions in the Persian Gulf. This energy price shock threatens to reignite cost-push inflation across vulnerable European supply chains.

A deep global fixed-income selloff has pushed long-dated government borrowing costs in Europe to levels not witnessed in over a decade. Germany's 10-year Bund yield climbed to its highest mark since 2011, while the corresponding French 10-year yield reached a 16-year peak. This surge is fueled by fears that persistent energy risks will prevent major central banks from enacting anticipated autumn rate cuts, alongside projections of elevated sovereign spending requirements.

European technology and artificial intelligence infrastructure stocks suffered sharp losses, giving up a portion of their substantial recent gains. Major sector constituents like ASML, Infineon Technologies, and STMicroelectronics fell significantly as rising long-term global borrowing costs applied pressure to high-growth valuations. The downturn was further exacerbated by disappointing individual corporate earnings updates within the broader technology and connectivity space.