Japan’s 10-year government bond yield climbed toward 3.1%, remaining at its highest level since 1996 as energy-driven inflation increased expectations that the Bank of Japan could accelerate its rate-hiking cycle. Oil prices rose after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran maintained its conditions for reopening the waterway. A former BOJ official said the central bank could raise its benchmark rate for a second consecutive month in October. Minutes from the BOJ’s July meeting showed policymakers favored preemptive action against upside inflation risks because the policy rate remains below the neutral range. Prospects for strong artificial intelligence-related investment also continue to support expectations for additional rate increases.