Bond selloff deepens as Iran war drives oil and yields higher

US Congressman Carlos Gimenez warned that Iranian drones “could be in Cuba,” highlighting the range and strike capabilities of Tehran’s widely used Shahed-136 drones.

Gimenez, a member of the House Armed Services and Homeland Security committees, said the drones can travel between 1,000 and 2,500 kilometers and carry explosive payloads of up to 50 kilograms.

He added that the low-cost drones use satellite navigation, fly at relatively low speeds to help evade radar and can be used for kamikaze attacks as well as intelligence and reconnaissance missions.

Canadian Prime Minister Mark Carney said Ottawa joined the International Atomic Energy Agency in condemning drone attacks targeting the Barakah nuclear power plant in the United Arab Emirates.

Carney warned that attacks on civilian nuclear facilities pose serious risks to human life and the environment.

Canada also expressed solidarity with the UAE and renewed calls for restraint and de-escalation across the region as tensions linked to the Iran conflict continue.

The Financial Times warned in an editorial on Monday that the global energy crunch triggered by the Iran war and disruption in the Strait of Hormuz is likely to intensify in the coming weeks.

The paper said emergency reserve releases and other government measures may buy time temporarily, but warned that falling fuel inventories and rising summer demand are increasing pressure on global energy markets.

The editorial argued that continued disruption to Persian Gulf exports could eventually force broader conservation measures and deepen the economic impact of the crisis.

Asian share markets fell on Monday after fresh drone attacks on the United Arab Emirates added to concerns over regional instability and energy supplies, pushing oil prices and bond yields higher.

Brent crude rose 1.2% to $110.63 a barrel, while US West Texas Intermediate crude climbed 1.0% to $106.42.

S&P 500 futures fell 0.4% and Nasdaq futures lost 0.5% in early Monday trading.

Russia’s envoy to international organizations in Vienna appeared to suggest Iran's parliament speaker Mohammad Bagher Ghalibaf should be give a similar role overseeing relations with Moscow after he was appointed special envoy for China affairs.

“Isn’t it equally relevant to think about something similar in relations with Russia?” Mikhail Ulyanov wrote on X while reacting to reports about Ghalibaf’s new role.

Iranian media reported Sunday that Ghalibaf had been appointed to oversee relations with China by President Masoud Pezeshkian and approved by supreme leader Mojtaba Khamenei.