Asian stocks tumbled Friday as oil prices extended gains and bond yields held at multi-year highs as the Middle East crisis stoked supply concerns and a forecast-topping US inflation report ramped up rate hike bets.Crude prices have soared more than 30 percent over the past week as the US and Iran exchanged strikes around the Strait of Hormuz, while Tehran has said it is prepared for a more intense conflict.
At the same time, Yemen's Houthis have hit several Saudi Arabian energy targets in a drive toward another key waterway that could cut off a crucial alternative route for global energy.
The rebels seized control of the strategic Red Sea port city of Mocha on Thursday.
Brent oil almost touched $110 per barrel Friday – its highest since May – and the US benchmark West Texas Intermediate hit a peak of more than $104, last seen around the same time.
With the war showing no sign of ending, investors are bracing for another surge in inflation that will put pressure on central banks to tighten monetary policy further.
