The risk of escalation in the Middle East conflict is rising, and the yield on UK government bonds is increasing.

The UK government bond yields rose after President Trump delivered a national speech in the United States, in which he said that the U.S. would "deliver a heavy blow to Iran in the next two to three weeks." This statement raised concerns about a potential escalation of conflict in the Middle East, pushing up oil prices and reigniting inflation worries. According to Tradeweb data, the 10-year UK government bond yield increased by 5 basis points to 4.895%, reversing the decline seen on Wednesday.