Oil edges higher as U.S.-Iran truce expiry lifts yields, curbs stocks

Oil prices rose and bond yields climbed at the start of Asian trading on Tuesday after a U.S.-Iran truce expired and Tehran said it would shift to a "fully offensive" military posture, reinforcing a broader risk-off mood across markets. MSCI's broadest Asia-Pacific share index outside Japan rose 0.8%, helped by a more than 3% jump in South Korea's KOSPI as Seoul reopened after a holiday, while Japan's Nikkei 225 fell 0.3% and S&P 500 e-mini futures were flat. The U.S. 10-year Treasury yield added 0.8 basis point (0.01 percentage point) to 4.728% and the 30-year yield rose 0.6 basis point to 5.3146%, its highest in more than two decades, as the global bond selloff deepened and Japan's 10-year government bond yield climbed 2.5 basis points to a three-decade high of 2.945%. Wall Street had weakened overnight after soft U.S. data, including an unexpected drop in retail sales, led markets to scale back expectations for an imminent Federal Reserve rate move. The dollar index hovered near a two-month low at 99.527, Brent crude edged up 0.2% to $91.06 a barrel after a more than $2 jump on Monday, gold rose 0.1% to $4,420.07 for a third straight day of gains, and cryptocurrencies were little changed, with bitcoin at $64,398.48 and ether at $1,911.40.

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