UK bonds, or gilt-edged securities, have sold off more aggressively than other assets since the U.S. and Israel attacked Iran, causing a significant sell-off in risk assets. The 10-year gilt, the most liquid and most widely-traded of all gilt maturities and a proxy for the UK government's long-term borrowing costs, fell sharply after the conflict. The conflict has added over 80 basis points to U.K. borrowing costs. This has implications for the government's ability to meet fiscal targets if the conflict continues. The Bank of England's policy rate was already the highest of any G7 central bank and Britain's inflation rate was higher than its peers. Investors have also expressed concerns about U.k. politics and the potential for increased spending on energy bills or tax increases, raising concerns about potential leadership challenges.