Oil advanced while US equity-index futures and Treasuries slipped after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, reigniting Middle East tensions that have roiled bond markets.
Brent crude climbed 1.5% to about $105.90 a barrel as Iran stuck to a seven-day proposal for reopening the Strait of Hormuz. The rise in oil added to inflation concerns, pushing the 10-year Treasury yield four basis points higher to 5.20% in Asian trading. A Bloomberg gauge of the dollar rose against most major currencies, while the yen weakened.