Suspected attacks on two tankers off the coast of Iran saw oil markets erupt out of their recent slump on Thursday and kept traders gobbling up ultra-safe government bonds, gold and the Japanese yen.
Brent surged as much 4% after reports of the attacks added to the already-heightened tensions between Iran and the United States.
Europe’s oil producers moved higher in the region’s stock markets.
The 10-year U.S. Treasuries yield dipped to 2.103 percent, while Germany borrowing costs sank back toward all-time lows in Europe.
Bond yields also fell in Asia. Long-dated Japanese government bond yields hit their lowest levels since August 2016, with 20-year yield down 2.5 basis points at 0.220 percent, before they rose back on a weak 30-year bond auction.
In Australia, long known for its high-yield currency, rates fell to record lows, with three-year yield now slipping below 1%.
In the currency market, the yen gained 0.2% to 108.32 to the dollar as risk sentiment soured while the Australian dollar dropped 0.25% to $0.6910.
The euro stood little changed at $1.1293. Sterling fetched $1.2670, not far from this week’s low of $1.2653.