Friday's selloff in U.S. government debt, sparked by inflation concerns stemming from the escalating conflict between Israel and Iran, sent Treasury yields up by the most in one week as oil prices surged.

Oil-watchers are bracing for a further price rally after Israeli strikes on Iranian energy assets heightened the risk to Middle East supplies. Follow live.

Uncertainty over tariffs had already led the central bank to adopt a wait-and-see approach to interest-rate decisions.

The global oil market is back in chaos after Israel launched military strikes against Iran on Friday. The move pushed crude oil prices up 8% to $74 a barrel

Israel’s attacks on Iran’s nuclear facilities risk pushing back the timeline for Federal Reserve interest-rate cuts as the US central bank waits to assess any potential impact on inflation, economists said.

From the risk of surging crude prices to rising Middle East worries, Bathini lays out how global tensions could shape inflation, policy moves, and investor strategy in the weeks ahead

President Trump has been able to argue that falling energy prices early in his term show his economic policies aren’t stoking inflation, but rapid-fire developments in the Middle East could put that case in jeopardy.

By Saqib Iqbal Ahmed, Suzanne McGee and Linda Pasquini NEW YORK/GDANSK (Reuters) -Investors were on edge ahead of markets reopening late on Sunday, gripped by anxiety over nationwide protests against President Donald Trump and the escalating threat of a sweeping conflict in the Middle East.