US-Iran Tensions Push Oil Prices Above $100 per Barrel
US-Iran tensions have pushed up oil prices above $100 per barrel, weighing on Asia-Pacific financial markets. The MSCI Asia Pacific Index fell 0.6% as Brent crude briefly touched $101.94 per barrel in early trading after Iranian officials claimed to have sunk 10 vessels near the Strait of Hormuz.
Oil prices later retreated, falling 0.7%, but remaining above $100 per barrel. The MSCI Asia Pacific Index declined 0.6%, led by losses in Australia. Bitcoin fell to $78,299, down 0.8% on the day.
The market is closely watching Friday's release of US Consumer Price Index (CPI) data, which could influence the Federal Reserve's decision on interest rates. Elias Haddad of Brown Brothers Harriman & Co. said that if the CPI data comes in hot, a September rate hike is almost certain, supporting a stronger US dollar.
US Treasury yields remain elevated, with the yield on the 10-year note near 4.85%. The U.S. dollar stays weak, constrained by uncertainty over the Federal Reserve's policy path.