Bond sell-off over Iran war drives borrowing costs

G7 bond yields have reached multi-decade highs due to escalating Iran tensions and rising oil prices above $111 per barrel, driven by US President Trump's threats. The sell-off has increased borrowing costs for European, Japanese, UK, and US governments, while also affecting developing economies and stock markets. Central banks face pressure to raise interest rates to combat inflation, causing mortgage costs to rise sharply across Europe and North America.