Eurozone government bond yields climbed to multimonth highs Friday as Brent crude oil prices surged above $100, driven by escalating Middle East tensions. The spike in energy costs has intensified inflation concerns across Europe, with investors reassessing their positions in sovereign debt. Commerzbank advised against buying Bunds, citing uncertainty over regional developments.

Oil prices jumped as the U.S.-Israel conflict with Iran continued, effectively closing the Strait of Hormuz to shipping and disrupting Gulf energy exports. The 10-year German Bund yield approached 3%, reflecting growing anxiety about inflation risks. Market participants are now weighing how sustained high oil prices could impact both economic growth and price stability.

With the European Central Bank's next meeting approaching, policymakers face mounting pressure to address inflation risks while maintaining economic support. The combination of geopolitical instability and energy price volatility has created a challenging environment for European bond markets, where yields are now testing levels not seen in months.