Eurozone bond yields rose on Monday, echoing a global government debt sell-off.
Investors worry about the impact of an energy shock on inflation and interest rates.
The Germany 10-year bond yield hit its highest level in 15 years. Yields in France, Italy and Spain also climbed.
In the US, the 10-year note yield touched a 15-month high, while Japan saw peaks not seen since 1996.
A drone strike hit a nuclear plant in the UAE; Saudi Arabia intercepted three drones. US President Donald Trump urged Iran to act quickly for a long-term peace deal.
Oil prices rose, with Brent crude above $110/barrel. The Strait of Hormuz remains effectively closed to tankers.
Analysts say the bond market sell-off is the dominant story in global financial markets.
