Australia’s 10-year government bond yield climbed around 5% toward multi-week highs as renewed tensions in the Middle East pushed oil prices higher and revived concerns that inflation could stay elevated. The move came after reports of Iranian attacks in the Strait of Hormuz and continued uncertainty over any agreement to reopen the key shipping route. Tehran is seeking to restrict U.S. and Israeli vessels from using the waterway while demanding compensation from countries it considers hostile. Rising energy prices strengthened the view that global interest rates may remain higher for longer. In Australia, however, traders are pricing in virtually no chance of a rate increase at the Reserve Bank’s policy meeting next week after softer-than-expected second-quarter inflation data. Investors are also assigning little chance of a move in September, while markets imply roughly a 60% probability of a hike in November if third-quarter inflation comes in stronger than expected.