On March 9, 2023, oil prices experienced a dramatic surge, climbing nearly 28% to approach $120 per barrel, marking the sharpest increase since 2022. This spike was primarily driven by escalating tensions in the U.S.–Israel–Iran conflict, raising concerns over potential disruptions to oil shipments through the Strait of Hormuz, which carries about 20% of the world's oil supply. The sudden rise in crude prices triggered a significant selloff in global bond markets, as investors adjusted their expectations for inflation and central bank interest rates. In Europe, bond yields surged sharply, with the UK seeing its two-year government bond yield jump nearly 40 basis points, the largest daily increase since the financial turmoil of 2022. Analysts suggest that if oil prices remain elevated, inflation could persist, forcing central banks like the European Central Bank and the Federal Reserve to reconsider their interest rate strategies. As geopolitical tensions continue, the G7 is contemplating the release of strategic petroleum reserves to mitigate the impact on oil markets, although such measures typically provide only temporary relief.