Oil Prices Soar to Near Seven-Month High Amid Middle East Tensions
Brent crude oil prices have reached a seven-month high of nearly $100 per barrel as renewed tensions in the Middle East heighten fears of a broader regional conflict.
The situation remains volatile, with Iran striking a US base in Jordan and Iranian-backed Houthi rebels attacking several cities in Saudi Arabia. This has put pressure on global markets, causing geopolitical risks to weigh heavily on demand for riskier assets in Asian stock markets.
In an unusual move, the Japanese yen is strengthening despite rising oil prices, which typically lead to a depreciation of the currency due to Japan's reliance on imported energy. Market participants are unwinding previously popular bets on a weaker yen and anticipating a faster pace of interest-rate hikes by the Bank of Japan.