Brent Crude Hits Almost $107 as Oil Prices Continue Rally

Oil prices continued their upward trend on Tuesday, reaching nearly $107 per barrel as Brent crude rose 1.3%. The gain was driven by concerns over Middle East supplies after a Saudi Arabian pipeline remained offline following attacks.

The surge in oil prices weighed heavily on Asian bonds, with government debt in Australia and New Zealand opening lower. This followed a drop in Treasuries in the US session, where the benchmark 10-year Treasury yield briefly breached 5% for the first time since 2023.

Gold fell for the second consecutive day to around $4,285 an ounce as higher rates typically reduce the appeal of non-yielding metals. A Bloomberg gauge of the dollar steadied after posting its biggest jump in over two months.

The increase in oil prices reignited inflation concerns ahead of Wednesday's Federal Reserve decision, with traders pricing in a 95% chance of an interest-rate hike.