Asia Markets Slide as US-Iran Tensions Escalate

Global markets experienced a downturn on Monday as tensions between the US and Iran escalated. The Brent futures price rose by 1.4% to $89.38 per barrel after US forces struck two of Iran's launchers on its island of Larak, prompting counterattacks from Iranian forces.

The heightened risk of inflation kept bond markets on edge following Federal Reserve Chair Kevin Warsh's emphasis on the central bank's need to control inflation.

The increased probability of a September rate hike to 57% caused short-term Treasury yields to jump sharply, flattening the curve.