The oil price is racing back towards $US100 a barrel and bond yields are at multi-decade highs but the ASX and Wall Street have barely budged.

Futures point to a flat start for the sharemarket on Monday, but the escalating war in the Middle East is likely to push oil and borrowing costs even higher.

The oil price is racing back towards $US100 a barrel and bond yields are at multi-decade highs but the ASX and Wall Street have barely budged.