London stocks fall post-holiday as global bond rout and Middle East strikes weigh

British equities fell on Tuesday as London traders returned from an extended bank holiday weekend to face a multi-front headwind of surging global bond yields, escalating Middle East geopolitical conflict, and persistent domestic inflation pressures. The benchmark FTSE 100 index declined by 0.3% to trade near 10,798 points, tracking broader losses across European bourses. A primary catalyst for the equity retreat was an aggressive global fixed-income selloff, headlined by benchmark 10-year Japanese government bond yields surging to generational highs alongside rising U.S. Treasury yields. Higher borrowing costs dampened equity valuations after hawkish commentary from central bankers. Simultaneously, military strikes between U.S. forces and Iran around the Strait of Hormuz pushed Brent crude oil toward $91 per barrel. While higher energy prices provided support for oil majors like BP and Shell, rising fuel costs reignited inflation concerns across rate-sensitive sectors, including UK housebuilders, consumer goods, and industrial miners.