Escalating tensions between the US and Iran push eurozone high-yield default protection costs to a five-month high

Due to the renewed escalation of tensions between the US and Iran, market sentiment has weakened, and the cost of credit default protection for high-yield bonds in the Eurozone has risen to its highest level in more than five months. US President Trump rejected Iran's proposal to reopen the Strait of Hormuz, sparking concerns in the market that interruptions to oil supply may persist longer. Brent crude oil prices surged 3.7% to $108.18 per barrel. According to S&P Global Market Intelligence data, the iTraxx Europe Crossover Index (Euro high-yield credit default swaps) rose by 1 basis point to 298 basis points, reaching the highest level since April 8.