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The Economic Times
The Economic Times
Business
Anupam Nagar

Global markets on edge as oil rally revives inflation and rate concerns.

A sharp rebound in oil prices has reignited concerns about inflation and market volatility, prompting investors to reassess interest rate expectations after US President Donald Trump declared that an interim agreement with Iran aimed at ending the conflict was "over," according to Reuters.

The comments triggered an immediate reaction across global financial markets: oil surged, bond yields climbed, and volatility gauges jumped as traders priced in the possibility of renewed inflationary pressures. Inflation-sensitive assets such as government bonds and gold came under pressure as investors recalibrated expectations for monetary policy.

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