US-Iran Tensions Send Oil Prices Soaring Amid Bond Yield Surge

Oil prices rose on Tuesday as US-Iran tensions escalated after a 60-day truce expired, pushing up bond yields and causing a risk-off tone in markets.

The US Treasury yield rose to its highest level in over two decades, at 4.728% for the 10-year benchmark, while the Japanese government bond yield hit a three-decade high of 2.945%.

The US dollar index traded around a two-month low of 99.527 as the greenback weakened against a basket of six currencies.

MSCI's Asia-Pacific shares outside Japan rose 0.8%, with South Korea's KOSPI leading gains, while the Nikkei 225 fell 0.3%.