US-Iran Tensions Send Oil Prices Soaring Above $91 Per Barrel

Oil prices surged above $91 per barrel on Tuesday as renewed fighting between the US and Iran heightened concerns over disruptions to Middle Eastern oil supplies, putting pressure on global energy markets.

The Brent crude price climbed above $91 a barrel, while US crude rose above $86 a barrel, extending gains from the previous session. The surge in oil prices also put further pressure on Japan's yen, which remained close to the key 160-per-dollar threshold as investors assessed the impact of higher energy costs on the country's economy.

US Treasury Secretary Scott Bessent stepped up pressure on Japan's government and central bank to raise interest rates later this month, saying he expected policymakers to take measures that would strengthen the yen. Markets are pricing in a 73% chance of a Bank of Japan rate hike later this month, although analysts said a single increase may not be enough to generate a sustained recovery in the currency.

The US dollar eased despite rising oil prices and Treasury yields as investors weighed the prospect of a Federal Reserve rate hike this month. Fed Chair Kevin Warsh said at the Jackson Hole symposium of central bankers that the Federal Reserve will 'have work to do' if policymakers do not gain confidence that inflation is cooling, strengthening expectations of a possible rate increase at the September meeting.