Asian Stocks Wary Amid Oil Price Surge

Stock markets in Asia were cautious on Monday as oil prices continued to rise due to doubts about a truce between the US and Iran. Brent futures jumped 1.6% to $106.00 a barrel, while US crude futures added 1.1% to $93.47 a barrel.

The rise in oil prices has led to higher yields on bonds, with 30-year Treasuries nudging up to 5.5185%, near their highest since 2004. Two-year yields have shot up 55 basis points this month in anticipation of Fed hikes.

Central banks have responded with a round of rate hikes, with the Reserve Bank of Australia likely to be the next to tighten when it meets on Tuesday. Markets now imply a 66% chance the Federal Reserve will hike for a second straight meeting in October.