EU Foreign Affairs Chief Kaja Kallas condemned Iran's recent attacks on Bahrain and Kuwait during the European trading session on Wednesday. She highlighted that the ongoing exchanges of fire between the United States and Iran are making diplomatic efforts to end the conflict increasingly difficult, according to FX Street.

Kallas's remarks underscore the growing geopolitical tensions in the Gulf region, where clashes between Iran and US forces threaten regional stability. The EU is closely monitoring the situation as it complicates broader peace negotiations.

For Japanese investors, heightened volatility in the Middle East can impact global energy markets and risk sentiment, factors that often influence FX and equity market movements in Japan.