Asia Markets Tumble Amid US-Iran Escalation

Share markets in Asia declined on Monday as tensions between the US and Iran escalated, pushing up oil prices.

Brent futures rose 2.7% to $90.51 a barrel after a US strike targeted two of Iran's launchers on its Larak island.

The resulting risk to inflation kept bond markets on edge, with US Federal Reserve chair Kevin Warsh emphasizing the need for the central bank to control inflation in his speech last Friday.

Markets responded by increasing the probability of a September rate hike to 57%, causing short-term Treasury yields to jump sharply and flattening the curve.