The Nasdaq plunged as the cost of US borrowing costs hit their highest level since 2007 Credit : TIMOTHY A. CLARY / AFP via Getty Images Stocks fell sharply on Wall Street as inflation fears pushed up the cost of US government borrowing to its highest level since 2007. The Nasdaq Composite sank by as much as 1.7pc as it was swept up in a global bond market sell-off driven by concerns over the war in the Middle East. Tensions remain high over whether a peace deal can be reached between the US and Iran to end the conflict that has sent energy prices soaring. Oil had fallen on Tuesday, with Brent crude down 1pc below $111 a barrel, after Donald Trump said he had held off launching a new offensive in hopes of striking a deal. But Iran’s army has warned that it would “open new fronts” against the United States if it resumes attacks. Concerns over an extended conflict, and higher energy prices, have steadily pushed up the cost of US government borrowing during the war.…