Brent Crude Nears $100 as Middle East Tensions Escalate, Yen Defies Gravity

Brent crude prices are nearing $100 a barrel for the second time this year, driven by escalating tensions in the Middle East. The conflict has fueled fears of a broader regional war and weighed on risk appetite across Asian equity markets.

The yen is defying expectations by rising to seven-month highs against the dollar, despite higher oil prices typically putting downward pressure on Japan's currency due to its reliance on imported energy from the region.

Market players attribute the yen's resilience to bets on a faster pace of Bank of Japan rate hikes and the clearing out of short positions in the currency. However, analysts warn that fundamentals may pull the yen back towards 155, potentially ahead of the BOJ meeting next week.