The oil shock is morphing into a global bond crisis

by · Australian Financial Review

Ambrose Evans-PritchardGlobal economy commentator
May 20, 2026 – 11.15am

The Iran war is doing more immediate damage to the economies of America, Europe and Japan via the bond markets than it is through the direct effects of the energy shock.

Borrowing costs have reached critical levels across the G7. They are resetting the price of credit for vast swaths of the global financial system. The effects are cascading through the mortgage industry and pushing a universe of over-indebted companies towards a refinancing crisis.

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Ambrose Evans-PritchardGlobal economy commentatorAmbrose Evans-Pritchard is a columnist at the Telegraph, London.

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