Oil prices jumped Monday after President Trump's latest warning to Iran threatened to upend the fragile cease-fire, sending Brent crude above $110 a barrel and West Texas Intermediate to roughly $102. Stocks retreated globally as investors priced in higher energy costs and inflation risks. The Strait of Hormuz remains closed, choking off a critical supply route.

Bond markets sold off sharply, with yields climbing worldwide as investors reassessed inflation prospects. Japan's government bond market saw the steepest moves, while U.S. 10-year yields hovered near 4.6 percent—the highest since early 2025. Deutsche Bank analysts warned that prolonged closure of the Strait could trigger physical oil shortages rather than just tight markets.

Asian markets broadly declined with mainland China, Japan and Taiwan all lower, though South Korea's KOSPI eked out slight gains. European indices slipped less than 1 percent. Meanwhile, gasoline prices held steady at $4.52 per gallon nationally—still up more than 50 percent since the conflict began. The energy shock threatens to derail the stock market rally that corporate earnings and earlier de-escalation hopes had fueled.