Brent crude oil prices surged into the high $90s as escalating tensions involving Houthi attacks and the ongoing U.S.-Iran conflict have raised concerns over potential supply disruptions near the Strait of Hormuz and the Red Sea, FX Street reported.
These geopolitical risks have caused bond markets to react strongly, treating the situation as an inflation shock, which has led to higher yields and tighter financial conditions, according to FX Street.
For Japanese investors, this surge in oil prices could influence energy-related equities and impact inflation expectations, potentially affecting the Bank of Japan's monetary policy considerations amid global uncertainty.