The UK 10-year gilt yield edged up to 5.2%, as investors increasingly priced in the prospect of further Bank of England rate hikes in the coming months amid renewed inflation concerns. Brent crude approached $100 a barrel, while UK natural gas prices climbed to their highest level since late 2022 amid renewed US-Iran fighting and reports that Iran and Oman were nearing an agreement to manage shipping through the Strait of Hormuz. Persistent inflation pressures and resilient economic growth are keeping central banks under pressure to maintain a restrictive policy stance. Markets are fully pricing in a 25-basis-point BoE rate increase by December and a second hike by March 2027, according to LSEG data. Investors also continued to assess the government’s commitment to fiscal discipline and restoring the UK’s credibility in international bond markets ahead of the Oct. 28 budget, alongside plans to boost regional growth by using public institutions to attract private investment.