US-Iran Tensions Send Oil Prices Higher as Bond Yields Surge

Asian markets started the day cautiously on Tuesday as tensions between the US and Iran escalated. The US-Iran ceasefire expired, and Tehran announced it would shift to a fully offensive military posture.

The expiration of the truce led to an increase in oil prices, with Brent crude futures rising by 0.2% to $91.06 per barrel. Bond yields also increased, with the yield on the US 10-year Treasury bond reaching its highest level in more than two decades at 4.728%. The 30-year US Treasury bond saw a similar rise, trading up 0.6 basis points at 5.3146%.

Despite these increases, Asian stocks managed to gain slightly, with the MSCI's broadest index of Asia-Pacific shares outside Japan rising by 0.8%. However, South Korea's KOSPI fell short of this growth, increasing only by 3% after a holiday.