German Finance Minister Blames Trump's Iran War for Bond Yield Surge

German Finance Minister Lars Klingbeil has linked the recent surge in global bond yields to the ongoing conflict between the United States and Iran, describing it as a consequence of "Donald Trump's war in Iran."

Speaking at a press conference in Schaan, Liechtenstein, alongside finance ministers from other German-speaking nations, Klingbeil said the rise in interest rates over recent weeks stems from the uncertainty generated by the military confrontation. He did not elaborate on specific policy responses.

The remarks come as Germany's 30-year government bond yield touched its highest level since 2011, reaching 3.79% last week. The selloff in bonds has been fueled by inflation concerns tied to the conflict, which has also pushed up yields on new debt issuance. Germany, the euro zone's benchmark issuer, sold a 30-year bond a day earlier at its most expensive borrowing cost in 15 years.

Meanwhile, Washington is reportedly preparing to warn countries to sever ties with Iran or face the risk of being cut off from the dollar-based financial system. Although the US and Iran have not conducted direct air strikes on each other's forces for weeks, the six-month-old conflict remains unresolved. The last official face-to-face talks took place in June, and attacks on vessels in the strategic Strait of Hormuz have continued.