Asian Stocks Slide as Oil Tops $100 Amid Escalating Middle East Tensions

Asian stocks took a hit on Thursday as oil prices continued to soar above $100 per barrel, fueled by escalating tensions in the Middle East. Brent crude futures edged up to $101.4 per barrel in early trading.

The rising oil prices are raising inflation fears, and investors are bracing for US inflation data releases later this week. The Treasury Department announced a $6 billion buyback of longer-dated bonds on Wednesday, which failed to meet some investors' expectations.

Markets are facing a challenging September, with global yields expected to rise as the market adjusts to higher inflation in the coming months, according to Nick Twidale, chief market strategist at ATFX Global.

The US Treasury yields held steady at 4.8406 per cent after scaling their highest since 2023 in the previous session. The euro was little changed at $1.16322 ahead of the European Central Bank policy decision, where a rate hike is expected.