Oil prices continue to find support as risks surrounding shipping through the Strait of Hormuz approach a near standstill, coupled with increasing concerns over ceasefire developments, according to FX Street. The strategic waterway's disruption raises supply anxieties that underpin commodity prices.
Additionally, iFlow data highlighted by FX Street indicate that energy equities flows have stabilized following profit-taking in June. This stabilization, combined with attractive valuations and under-ownership in the sector, may provide further support for energy markets.
For Japanese investors, these dynamics are particularly relevant given Japan's reliance on Middle Eastern oil imports and the potential impact on FX and equity markets sensitive to energy price fluctuations.