Rising bond yields have added tens of billions to G7 governments' financing costs since the US-Iran war began

Bond yields across the Group of Seven advanced economies have climbed since the US-Iran war began, adding tens of billions of dollars to the collective cost of servicing government debt, the Financial Times reported. The increase compounds fiscal pressure on countries that were already running large deficits. Higher yields mean governments must pay more interest on new debt issuance and on debt being rolled over, a cost that shows up directly in national budgets. The FT's analysis ties the rise specifically to the period since the war's outbreak, suggesting the conflict itself, not just broader inflation trends, is a driver of the higher financing bill. The report does not specify which G7 members face the largest increases or whether the added cost is expected to persist if the war winds down. Iran has said the Strait of Hormuz remains closed as the conflict enters its seventh month, a sign the disruption feeding into yields is not resolving quickly.