Asian equity markets declined on Tuesday as oil prices climbed higher amid renewed hostilities in the Middle East, stoking inflation concerns and strengthening expectations for near-term interest rate hikes. US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan, marking a return to combat between the US and Iran after roughly a month. Global bond yields rose to fresh highs on growing inflation concerns, with Japan’s benchmark 10-year yield reaching a fresh 30-year high, adding to downward pressure on equities. Stocks in Australia, Japan, South Korea, China and Hong Kong all fell, with technology and artificial intelligence-related companies leading the losses.