Noontime News Recap: Bond sell off deepens as Europe weighs security shocks and regional tensions

Government bond markets came under renewed pressure as investors sold debt across major economies, with UK borrowing costs rising to their highest level in years amid fresh inflation fears linked to US Iran tensions.  🔗

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In the Middle East, Israeli forces and settlers attacked two mosques in the occupied West Bank on the same day, according to Palestinian officials and local accounts, adding to already high tensions on the ground.  🔗 Greece and Israel also signed a $3.5bn defence deal to build the Achilles Shield integrated air and missile defence network, a major new military cooperation project.  🔗

Ukraine warned of further disruption to aviation as President Volodymyr Zelensky said Russian airspace was becoming completely dangerous for airlines, insurers and airport operators amid a drone escalation.  🔗 Separately, EU foreign ministers met informally in Wicklow, Ireland, after Germany formally blamed Russia for last month's attempted drone attack at Leipzig airport.  🔗

In South Asia, rescuers in Nepal continued searching hydropower tunnels for workers feared trapped after a mud and debris flood a week ago, with no one yet confirmed alive and bodies still being recovered.  🔗 In the Black Sea region, Turkiye launched a search and rescue operation after two Turkish flagged cargo vessels collided in the Marmara Sea off Istanbul.  🔗

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Russia said it will raise utility tariffs by an average 15% from 1 October, a move expected to add to inflation pressure in an economy already strained by war and sanctions.  🔗 In West Africa, Guinea Bissau's electoral commission confirmed voters approved a new constitution that significantly expands presidential powers, after provisional results had pointed the same way.  🔗

In Ireland, foreign minister Helen McEntee said Ireland and the United Kingdom should be prepared for a future border poll on Irish unity, signalling that debate over constitutional change remains active.  🔗

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