Oil Prices Soar as Middle East Tensions Escalate

The escalating tensions in the Middle East have sent oil prices soaring to over $91 a barrel, prompting a rise in inflation concerns and expectations of further monetary tightening.

In early Asian trading, Brent crude extended its gains as fighting resumed between the US and Iran. The conflict has dimmed prospects for the normalization of shipping through the Strait of Hormuz, keeping oil prices elevated and adding to worries about rising costs.

The 10-year Treasury yield rose two basis points to 4.77%, its highest level since January 2025, pushing government bonds in Japan, Australia, and New Zealand lower.