The Rupee opened weak towards 96 per U.S. dollar after a third consecutive night of U.S. strikes ?against Iran reinforced fears of the fragile ceasefire breaking down ?and fuelled a renewed rise in oil prices. Brent crude climbed to $85.64 ?a barrel in Asian trading, its highest level in more than a ?month, after the U.S. military renewed strikes on Iran and reports emerged ?of attacks on tankers in the Strait of Hormuz. Brent surged nearly 10% on Monday and is now up more than 20% from its recent lows, unwinding much of ?the relief the rupee had derived from softer oil prices. The rupee had ?recovered to near 94, with measures announced by the Reserve Bank of India to ?attract ?dollar inflows improving the currency's near-term outlook. While a chunk of the inflows linked to the RBI's measures are still awaited, the rupee's main source of pressure, oil, has returned. The rupee's challenges have been amplified by a rise in U.S. Treasury yields. Short-dated Treasury yields climbed to their highest levels in 17 ?months on ?Tuesday amid higher oil prices rekindling inflation ?concerns. The dollar steadied on ?Tuesday ahead of U.S. inflation data, with Middle East tensions lifting oil prices while the yen held a soft tone amid caution ?over possible intervention and after policymakers' comments on state pension fund allocations. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, eased 0.04% to 101.23. U.S. and Iranian forces exchanged heavy missile and drone assaults at the weekend, with Tehran striking U.S. facilities in states across the Gulf on ?Sunday and saying it had again closed the vital Strait of Hormuz shipping route. The euro was up against the dollar at $1.1388 and sterling gained 0.07% to $1.3355. The Japanese yen was roughly flat against the greenback at 162.38 per dollar on Tuesday, having given up most of its earlier gains to 162.31, as traders remained on alert for possible intervention from authorities in Tokyo while the currency languished near 40-year lows. The Japanese ?currency briefly strengthened following comments from ?Finance Minister Satsuki Katayama that Tokyo may ?consider adjusting state pension fund asset allocations if the environment surrounding asset management changes sharply. The Australian dollar gained 0.07% to $0.6921 versus the ?greenback. New Zealand's kiwi strengthened nearly 0.5% versus the dollar to $0.5776. Oil prices rose nearly 3% on Tuesday to their highest in four weeks, as ?the U.S. reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows. Brent crude futures were last up $1.50, or 1.8%, to $84.80 per barrel at 0330 GMT, while U.S. West Texas Intermediate crude rose $1.70, ?or 2.2%, to $79.84 a barrel.......