Tension Builds as US Inflation Report Looms Amid Energy Market Volatility

The U.S. Treasury market is on high alert ahead of tomorrow's inflation report, with yields on long-term bonds reaching nearly 20-year highs.

Renewed tensions in energy markets are adding to the anxiety, with Brent crude trading at nearly $90 a barrel after rising 5% yesterday.

The Strait of Hormuz dispute between the U.S. and Iran has intensified, with Tehran demanding that Washington lift sanctions and pay reparations in exchange for reopening the strategic waterway.

Meanwhile, Japan's yen weakened past the 159-per-dollar level on Monday and into Tuesday, testing the resolve of Japanese and U.S. authorities to support the currency after recent intervention.