France’s 10-year OAT yield climbed above 3.4%, its highest since February 9, as investors responded to stronger-than-expected Eurozone inflation data and escalating Middle East tensions. February figures showed annual Eurozone inflation at 1.9% and core inflation at 2.4%, both exceeding forecasts. Market pressures were compounded by surging energy costs, with natural gas and crude oil prices spiking after the formal closure of the Strait of Hormuz and the ongoing suspension of Qatari LNG exports. Higher energy prices are expected to prolong inflationary pressures across Europe, potentially prompting the European Central Bank to maintain a hawkish stance. Meanwhile, US President Donald Trump indicated that the military campaign against Iran could last four to five weeks but emphasized that US forces are ready to extend operations if needed.
