Oil climbs as bond selloff rattles global markets

Oil prices rose Tuesday as uncertainty over US-Iran talks fueled inflation fears, while government bond yields hit multi-year highs, pressuring stocks. Brent crude gained nearly 2% to over $107 a barrel after hopes for reopening the Strait of Hormuz faded when Donald Trump rejected an Iranian truce proposal. The 10-year US Treasury yield exceeded 5.27%, a 19-year high, as September's bond selloff became the strongest in two years. Rising yields increase borrowing costs across the economy and make stocks less attractive. Asian markets fell Tuesday, with Japan's Nikkei down 1.3%. Australia's central bank raised rates to 4.6%, a 15-year high, citing fuel costs driving inflation.