Yen Surges as Oil Prices Correct on Hopes for Iran-US Diplomacy

The Japanese Yen has made a recovery against the US Dollar as oil prices have corrected sharply. A senior Iranian official stated that Iran could reopen the Strait of Hormuz within seven days if the US takes initial steps to ease military pressure.

The proposal was delivered to the US via mediators on September 16, according to Kyodo News. This development has led to a weakening of oil prices as hopes for diplomacy between the US and Iran have increased.

Oil prices dropped due to the possibility of improved energy supply through the Middle East. Saudi Arabia is preparing to resume crude oil exports from the Red Sea port of Yanbu as early as Tuesday, and will also restart the East-West oil pipeline.