UAE Asset Transfer Weighs on Oil Prices Amid Elevated Producer Prices

Oil prices edged lower after reports emerged that the UAE released further billions in Iran's frozen assets, including gold worth around $212 million. The transfer is said to have taken place on August 11 and 12.

In Japan, July producer prices remained elevated at 7.2% year-over-year, below the forecasted 7.4%. However, a significant jump in yen-denominated import prices kept imported inflation pressure high, reinforcing the case for a Bank of Japan rate hike in September.

The Reserve Bank of Australia's Assistant Governor Christopher Kent sparked market expectations with his comments on inflation risks and further rate increases. While he noted that cash rate hikes are having their intended effect, he also flagged weak productivity growth as complicating the inflation outlook.