Investors get inflation 'wake-up call' as Trump fires up oil prices

Global investors received an inflation “wake-up call” after U.S. President Donald Trump said an interim agreement with Iran to end the war “is over.” The comments sparked renewed oil-price risk, with inflation-sensitive assets falling as oil rose sharply. Oil jumped as much as 6% on Wednesday to a two-week high, while bonds and gold also dropped, and markets remained unsettled into Thursday. Brent futures hovered near $78 per barrel at close, compared with levels of $120-plus seen for two months earlier in the spring. The article links the price swings to earlier developments reopening the Strait of Hormuz and creating a temporary glut. It also notes bond yields rising as traders adjusted interest-rate expectations, with euro zone one-year CPI inflation contracts rising 25 basis points to 2.12%, according to LSEG data.