The U.S.-Israeli air war on Iran escalated on Monday, causing oil and gas prices to rise, the currency to rise, stock indexes to fall, and safe-haven gold to rise. The war might disrupt global economic recovery and cause inflation.

Israeli and U.S. strikes on Iran and Tehran’s reprisal knocked down oil and gas facilities across the Middle East and hampered shipping in the Strait of Hormuz, driving up prices.

U.S. Treasury rates increased across durations as investors worry about global inflation due to rising oil costs, replacing safe-haven buying over a prolonged conflict.
From 3.962% late Friday, benchmark U.S. 10-year notes jumped 7.6 basis points to 4.038%, while 30-year bonds advanced 5.3 basis points to 4.6864%.

The 2-year note yield, which tracks Federal Reserve interest rate predictions, jumped 9.2 basis points to 3.471%.
The dollar saw the greatest rise in currency markets, outperforming safe-haven currencies like the Swiss franc and Japanese yen. Since the U.S. exports energy and Europe and Japan import, oil price fluctuations affect currency markets.

The euro fell 0.91% to $1.1705. The dollar rose 1.03% to 157.64 against the yen. Sterling fell 0.66% to $1.3395.
The dollar rose 1.34% to 0.779 against the Swiss franc.
Bitcoin rose 4.60% to $68,705.98.