Yen Surges to Seven-Month High Amid Escalating Oil Prices and Middle East Tensions

The Japanese yen has strengthened to its strongest level since February, pushing the US dollar on the defensive as global markets grapple with rising oil prices and escalating tensions in the Middle East.

Brent crude futures surged over 1.48% to $99.37 per barrel following strikes by Iranian-backed Houthis in Yemen against Saudi cities, further entangling a US ally in the conflict.

The reaction in the currency market saw the dollar modestly decline, though some analysts attributed this weakness to the yen's rapid rise over the past week.

The euro remained steady at $1.1631, while sterling last traded at $1.3546. The dollar index, which measures the US currency against six key rivals, was at 98.15, close to its lowest level in almost two weeks.