The worst Treasurys rout since April's tariff chaos is intensifying pressure across financial markets. War disruptions to oil flows, particularly the Hormuz blockade, have triggered one of the largest oil shocks on record, leaving investors with few safe havens amid mounting economic concerns.

Stock indexes have fallen to their lowest levels since August as the oil shock fuels fears of economic slowdown. Traditional safe assets have failed to provide relief, with investors fleeing to both equities and bonds simultaneously in a rare flight from risk across all asset classes.

Bonds, typically a refuge during market turmoil, have offered no comfort as inflation concerns persist. Resurgent inflation expectations keep interest rates higher than anticipated, undermining the value of fixed payouts that define these securities, creating a challenging environment for fixed-income investors.