US-Iran Tensions Send Asian Shares Sliding Amid Rising Oil Prices

Asian share markets slid on August 31 due to fresh fighting between the US and Iran, which pushed up oil prices. Brent futures rose 2.8% to $90.60 a barrel after US forces struck two of Iran's launchers on its island of Larak.

The resulting risk to inflation kept bond markets on edge following Federal Reserve Chairman Kevin Warsh's emphasis on August 28 that the central bank had work to do to control inflation. Markets reacted by lifting the probability of a September rate increase to 57%, shoving short-term Treasury yields sharply higher and flattening the curve.

Analysts are forecasting a bounce of 58,000 in jobs following July's shock drop of 23,000, with unemployment holding at 4.1%. A much weaker outcome would be needed for the risk of a September rate move to lessen greatly.