$100 Barrel Looms as Middle East Tensions Fuel Oil Rally

A nervous caution hung over U.S. markets on Tuesday as hostilities in the Middle East pushed oil to a six-week high and Brent crude futures close to $100 a barrel.

The Japanese yen extended its strong gains, hitting a seven-month high against the dollar.

The 10-year Treasury yield rose near 5%, a level it hasn't held for long in almost two decades. Bank of America says long-dated Treasuries have returned -2% over the last 10 years, the worst period for over a century.

However, some analysts believe that yields at current levels are not unusual and may be a 'buy' for many investors.