Oil Prices Climb as US-Iran Tensions Escalate

Oil prices climbed and bond yields rose on Tuesday as trading resumed in Asia following the expiration of the US-Iran ceasefire. The Brent crude futures edged up by 0.2% to $91.06 a barrel, while the yield on the U.S. 10-year Treasury bond increased by 0.8 basis points to 4.728%. This rise in yields was attributed to the recent global selloff in bonds.

The expiration of the truce between the US and Iran led to renewed tensions in the Middle East, pushing oil prices higher. The U.S. dollar index traded around a two-month low of 99.527. Gold prices also rose by 0.1% to $4,420.07, while bitcoin was up 0.1% at $64,398.48.

ING analysts noted that typically, moves above 4.65% for the U.S. 10-year bond have been followed by soothing words from the Trump administration. However, this time, there were no signs of an imminent resolution to the conflict with Iran. The yield on the 30-year US Treasury bond rose by 0.6 basis points to 5.3146%, its highest in over two decades.

The recent global selloff in bonds deepened, with the yield on the 10-year Japanese government bond rising by 2.5 basis points to 2.945%, a three-decade high.