Brent crude rises above $95 a barrel amid renewed escalation in the conflict between the US and Iran, according to Commerzbank Research in a note. Treasury yields climbed to new highs in Asian trading before later stabilizing.
The US-Iran conflict is intensifying, with both sides carrying out attacks, said Commerzbank. US Treasury Secretary Scott Bessent warned that the Strait of Hormuz could become "worthless" as exporters increasingly turn to alternative routes.
Russian President Vladimir Putin pledges continued support for Iran amid its conflict with the US, while the FT reports that Russia is secretly assisting Tehran in developing supersonic cruise missiles.
Bessent said China blocked a unanimous joint G20 statement over disagreements surrounding its trade surplus. The US treasury secretary also said that Artificial Intelligence will have a disinflationary effect, with its benefits expected to become visible within six months.
US equity futures are lower across the board, added Commerzbank.
In Europe, European Central Bank policymaker Gabriel Makhlouf says he is "uneasy" about inflation and stresses that the ECB must remain prepared to raise interest rates if necessary.
The European Union may accelerate disbursements from its 90 billion euros loan to Ukraine as Kyiv confronts a growing funding shortfall.
In Asia, Bank of Japan Governor Kazuo Ueda signals that a September rate hike is increasingly likely, while board member Hajime Takata reiterates support for timely hikes and says rising yields don't constitute exceptional circumstances.
The Reserve Bank of New Zealand raised the cash rate by 25 basis points to 2.75%, as expected.