German government bond yields climbed on Monday, with the two-year yield touching its highest level in two years as rising oil prices amid escalating U.S.-Iran tensions strengthened market expectations that the European Central Bank (ECB) will continue tightening monetary policy.
According to Reuters, Brent crude prices jumped 3% to above $90 a barrel after worsening hostilities between the United States and Iran disrupted oil shipments through the Strait of Hormuz, raising concerns over inflationary pressures in the euro zone.
