U.S. President Donald Trump has set a deadline for Iran to open the Strait of Hormuz, or the US will "obliterate" Iran's power plants. The first target would be a nuclear plant, which is usually prohibited under international law and could lead to a major environmental disaster. Iran responded by threatening to shut the Strait completely and strike on other energy and water infrastructure in neighbouring countries. Oil futures have risen due to concerns about longer-term shortages, with September Brent up $1 at $92.90 suggesting high prices. The inflationary pulse is also impacting bonds, with 10-year Treasury yields reaching eight-month highs of 4.4150%. This has led to a drop in equity in Japan and South Korea, with European stock futures off 1.1% to 1.3%.