Yen Soars as Oil Prices Hit $100 Amid Escalating Middle East Tensions

The Japanese yen reached seven-month highs on Wednesday, pushing the dollar down. This comes as traders grapple with oil prices breaking above $100 per barrel in the face of a widening war in the Middle East.

The Houthis in Yemen launched strikes on several Saudi Arabian cities, further embroiling a U.S. ally in the conflict, while American forces hit multiple Iranian oil tankers and Tehran struck a U.S. base in Jordan.

Brent crude futures rose as much as 2.3% to above $100 for the first time since late July, casting a shadow over global markets ahead of U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.