War-Driven Oil Price Spike Hits Nearly $100 a Barrel

Oil prices have surged to nearly $100 a barrel due to fresh attacks on Saudi Arabia by Houthi rebels in Yemen, causing most Asian stock markets to decline. The Japanese yen has risen as investors bet on an interest rate hike from the Bank of Japan, which is weighing on Tokyo stocks.

Kathleen Brooks, research director at XTB, noted that 'the rise in oil prices has spooked markets, and European equities are lower, along with US equity futures.' The Nikkei 225 index has been hit particularly hard as a stronger yen is bad news for Japanese exporters.

The yen briefly touched 152.89 against the dollar on Tuesday, close to its February high of 152.10. Traders are monitoring how the greenback reacts to upcoming US inflation data, which could influence an interest rate hike from the Federal Reserve this month.