U.S.-Iran strikes lift oil and bond yields as Asian equities rebound
Fresh U.S. strikes on Iran after attacks on shipping near the Strait of Hormuz pushed Brent toward $79-$80, raised inflation and rate concerns, and unsettled currencies, bonds and risk assets even as Asian chip-led shares advanced.
Fresh U.S. strikes on Iran and renewed threats to shipping in or near the Strait of Hormuz drove Brent crude to around $78.65-$79.28, briefly above $80, reviving fears of oil-supply disruption and pushing global bond yields higher. Markets priced in stronger inflation risk and a greater chance of Federal Reserve tightening, while the dollar stayed near multi-decade highs against the yen and Bitcoin fell as investors reduced exposure to risk assets. At the same time, Asian equities rose, led by semiconductor shares, with Japan’s Nikkei up 2.3% and South Korea’s KOSPI up 3.8%, as investors also weighed President Trump’s later comment that he did not expect a return to a full-fledged war.
- Strait of Hormuz: A strategic waterway between the Persian Gulf and the Sea of Oman through which about one-fifth of global oil shipments pass.
- Brent crude futures: Contracts tracking the main international oil benchmark, widely used to price seaborne crude.
- Fed funds futures: Derivatives tracking market expectations for future Federal Reserve interest-rate moves.