Middle East War: Indian Bonds Fall 5 Bps, Brent Crude Crosses $85

• Indian bonds fell nearly 5 basis points on March 4 due to escalating Middle East conflict.
• Brent crude prices spiked to over $85 per barrel after US-Israel strikes killed Iranian Supreme Leader Ayatollah Ali Khamenei.
• Iran retaliated with missile and drone strikes; Strait of Hormuz, vital for 40% of India's energy imports, was shut down.
• The benchmark 10-year bond yield rose to 6.7238%, reflecting market concerns over inflationary pressures from higher crude.
• Traders await Friday's Rs 29,000 crore debt auction for further cues on bond yields.