Iran-US Tensions Send Oil Prices Soaring to $90.51

Global financial markets are under pressure due to escalating tensions between the United States and Iran. The Brent crude oil price surged to $90.51 per barrel, a 2.7% increase, following airstrikes on Iranian military facilities and Iranian retaliatory attacks.

The rise in oil prices has fueled concerns about supply disruptions, which could have an inflationary effect on the global economy. As a result, investors are becoming increasingly cautious, causing U.S. Treasury yields to spike. The yield on 2-year U.S. Treasury notes rose to 4.34%, while the probability of an early Fed rate hike in September jumped to 57%.

The surge in oil prices and rate hike expectations have led to a decline in Asian stock markets, with Japan's Nikkei 225 index falling 0.4%. The yen has also weakened to 159.78 per dollar, approaching the 160 level.

Market volatility is expected to continue as investors await key economic indicators from the United States, including the August non-farm payroll and Consumer Price Index (CPI) data. These releases will determine whether the Federal Reserve has justification for an early rate hike.