Long-term borrowing costs in the UK have surged to their highest levels in nearly three decades, with the yield on 30-year government bonds reaching 5.794%. This increase is attributed to political instability as Labour leader Keir Starmer faces mounting pressure to resign, with over 70 MPs publicly calling for his departure. Investors are worried about potential changes to fiscal policies that could arise from a new leadership, particularly if left-leaning candidates like Angela Rayner or Andy Burnham take charge. The benchmark 10-year yield on UK government bonds also rose to 5.11%, just below its highest levels since 2008, amid fears that ongoing geopolitical tensions, particularly related to the Iran conflict, could exacerbate inflation. The pound fell 0.5% against the US dollar and 0.3% against the euro, reflecting market unease. The FTSE 100 index dropped nearly 1%, with banks like Barclays, Natwest, and Lloyds seeing significant declines. Rising energy prices, particularly Brent crude oil, which increased by 2.7% to $106 a barrel, are further fueling inflation concerns, as geopolitical negotiations remain fragile.