Asian Stocks Plummet as US-Iran Tensions Send Oil Prices Soaring

Asian stocks took a hit on Wednesday as tensions between the US and Iran continued to escalate. The MSCI Asia-Pacific Index fell 1.5%, with South Korea's KOSPI dropping over 3% and Japan's Nikkei 225 slipping 2.6%. Oil prices surged, with Brent crude rising 1.3% to $95.91 a barrel.

The sharp increase in oil prices is attributed to renewed fears of disruptions to the Strait of Hormuz. Westpac analysts noted that 'the threat of further disruptions has brought about renewed anxiety over inflation,' leading to a selloff in stocks and bonds globally.

US bond yields reached their highest level in almost three years, with the 10-year Treasury yield hitting an intraday high of 4.8122%. Japan's 5-year government bond yield climbed to 2.295%, a record high.

Crypto assets also felt the impact, with Bitcoin falling to $77,000 and Ether dropping to $2,410.73.