Nikkei 225 Index Barely Moves Amid Oil Price Surge

Japan's Nikkei 225 index barely moved on Tuesday, down just 0.01%, as oil prices rose and lifted US Treasury yields and the dollar.

The increase in oil prices was due to fresh attacks by Iran-backed Houthi forces on Saudi oil infrastructure, which raised concerns about supply disruptions through key shipping lanes.

This led to higher energy prices, which can push inflation expectations up, in turn pushing Treasury yields higher as bond investors demand more compensation for rising prices.

The higher yields supported the dollar and tightened financial conditions, keeping markets sensitive to the Federal Reserve's next move.