Drone Strikes and Rising Yields: Global Markets on Edge

Global share markets experienced a downturn on Monday as new drone attacks in the Gulf region escalated oil prices and bond yields, intensifying inflation fears at a critical moment when tech stocks face scrutiny with Nvidia's forthcoming earnings.

The oil and gas trade is further strained by the closure of the Strait of Hormuz, a pivotal waterway managed by Tehran, while the G7 finance ministers convened in Paris to deliberate on supply issues. U.S. bond yields reached new highs as the energy price surge continues to loom over economic growth prospects.

Amid these factors, the tech-oriented AI sector awaits Nvidia's earnings report, which is set to test the bullish run. Additionally, rising yields are re-evaluating stock valuations, placing markets under pressure as geopolitical tensions persist.

(With inputs from agencies.)