What happened
According to a Financial Times study, the outbreak of war between the US and Iran in February has pushed up government bond yields worldwide.
The rise in yields has increased borrowing costs for the world's major developed economies, with G7 financing costs estimated to climb by hundreds of billions of dollars.
Why it matters
Higher bond yields mean governments must pay more to service new debt, which can strain fiscal budgets and potentially lead to spending cuts or tax increases.
The scale of the increase—hundreds of billions for the G7—highlights how geopolitical conflict can quickly translate into tangible financial pressure on advanced economies.
Key facts
The US-Iran war began in February.
Global government bond yields have risen since the war started.
G7 borrowing costs are estimated to increase by hundreds of billions of dollars, according to Financial Times research.
What to watch next
Whether bond yields continue to climb as the conflict evolves, further raising government financing costs.
How G7 governments respond to higher debt expenses, including potential shifts in fiscal policy.