Fuel oil prices rise further in the global market

Global oil prices jumped 5 percent on fears of a wider conflict in the Middle East and a hurricane off the coast of the United States that could disrupt oil production, sparking a major sell-off in stock and bond markets around the world, the Guardian reported .

Brent crude prices rose 5 percent to $105.3 per barrel on Thursday (October 8), raising concerns among investors about inflation.

The yield on 10-year government bonds in the UK rose six basis points to 5.515 percent, the highest since July 2007. The yield on 30-year bonds rose three basis points to 6.0117 percent. It had risen to 6.036 percent on Wednesday, the highest since January 1998.

The government's borrowing costs are also increasing pressure on John Healy, who is preparing to present his first budget on October 28.

The market turmoil began after a report in The Atlantic reported that the White House has ordered the Pentagon to develop a possible attack plan against Iran before the US midterm elections. Citing unnamed officials from the Donald Trump administration, the report said that the type of possible attack, its target and whether it would even happen are still under discussion.

This has weakened expectations that Trump will refrain from escalating the conflict with Iran before next month's midterm elections. The report said that after initially conducting limited operations, more large-scale military action could be taken after the midterm elections.

A new attack on Iran could further threaten global oil supplies from the Middle East. The US-Israeli war against Tehran is now in its eighth month. A surge in attacks on oil tankers in the Strait of Hormuz has reduced shipping traffic in the vital waterway, deepening concerns about oil supplies.

A tanker was also hit by a projectile off the northern coast of Qatar on Wednesday, with casualties reported by the UK's Maritime Trade Operations.

In addition, fears of a decline in oil production in the Gulf of Mexico have also contributed to the rise in prices. Tropical Storm Isaias has become the first hurricane of the Atlantic season. Shell and Chevron have announced production shutdowns as the storm approaches the region. The storm is expected to make landfall on Friday or Saturday.

Meanwhile, Danish shipping company Maersk has also raised concerns about rising fuel costs. The company said on Thursday that it is increasing emergency fuel surcharges for the collection of export goods and the delivery of import goods.

Rising fuel prices have heightened concerns about inflation around the world, raising expectations that central banks may have to raise interest rates to control inflation.

Government bond prices around the world continued to fall on Thursday. In France, the yield on 10-year government bonds rose six basis points to 4.931 percent. The yield hit a 24-year high of 4.994 percent last week on concerns about the country's rising debt and government spending.

The yield on Germany's 10-year bond, a key indicator of European debt markets, rose two basis points to 3.504 percent. The yield on the US 10-year Treasury bond also rose five basis points to 5.331 percent.

The global stock market was also affected. Japan's Nikkei index fell 1.4 percent and South Korea's Kospi index fell 2.6 percent. In Europe, the Stoxx Europe 600 index, which includes shares of large companies, fell 0.9 percent. The UK's FTSE 100 index also fell 0.4 percent earlier in the day.