Reuters reports:
Asian shares struggled on Tuesday as investors weighed Middle East tensions and calls by industry figures for a slowdown in AI development, while elevated oil prices and higher bond yields added to caution before key central bank meetings in the U.S. and Japan.
Yemen's Iran-aligned Houthis launched a new attack on Saudi Arabia on Monday, after Riyadh blamed Iran-backed fighters in Iraq for an attack on the kingdom's east-west pipeline that it said could disrupt as much as 4% of global oil supply. Gulf Arab states also postponed planned talks with Iran.
Renewed supply concerns kept markets on edge, with U.S. crude rising 1.27% to $102.68 a barrel while Brent was up 1.21% to $106.96 per barrel.
"Markets are likely to remain focused on the risk that higher crude oil prices could add to inflationary pressures and, in turn, push interest rates higher," said Yokoo Akihiko, analyst at Mitsubishi UFJ Bank, in a note.
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