Asia Stocks Slide as Oil Prices Surge Amid US-Iran Tensions

Stocks in Asia dropped on Monday amid rising oil prices and bond yields. Oil prices surged higher, with Brent futures increasing by 2.7% to $107.16 a barrel. US crude futures added 1.9% to $94.16 a barrel.

The increase in oil prices was attributed to the ongoing tensions between the United States and Iran. Despite talks continuing this week, Iranian proposals have not shown any signs of being watered down. As a result, markets are pricing in higher interest rates ahead of a packed economic news schedule.

Central banks have responded with rate hikes, with the Reserve Bank of Australia expected to tighten its monetary policy on Tuesday. Markets now imply a 68% chance that the Federal Reserve will hike for a second straight meeting in October.