US dollar

Oil prices climbed for a third straight session on Wednesday as renewed hostilities in the Gulf heightened concerns over global energy supplies. US crude futures rose nearly 2 percent to reach $95.40 per barrel after peace talks between the United States and Iran stalled, raising fears of further disruptions in one of the world’s most important oil-producing regions. The latest increase reflects growing market anxiety over the security of oil shipments through the Strait of Hormuz, a critical maritime route for global energy trade. US-Iran Conflict Raises Supply Concerns Market sentiment turned cautious after fresh military exchanges between Washington and Tehran. According to the US Central Command, Iran launched missiles toward Kuwait and Bahrain. The attacks were reportedly intercepted or failed to reach their targets. In response, US forces struck Iran’s Qeshm Island, located near the Strait of Hormuz. Meanwhile, Iran’s Revolutionary Guards claimed responsibility for attacks targeting the headquarters of the US Fifth Fleet. The escalation came only days after both countries signaled progress toward a potential agreement aimed at ending hostilities. However, the absence of a formal deal has revived concerns that tensions could continue to threaten regional stability and global energy supplies. Strait of Hormuz Remains Under Pressure Analysts say the Strait of Hormuz remains a major source of concern for oil markets. ANZ Bank Senior Commodity Strategist Daniel Hynes noted that efforts to fully reopen the waterway face significant challenges. He said Iran has reportedly mined large areas of the strategic passage, making commercial shipping operations difficult. Although some vessels have resumed transit, shipping volumes remain significantly below pre-conflict levels. The Strait of Hormuz handles a substantial portion of the world’s crude oil exports, making any disruption a key driver of oil prices. US Oil Inventories Continue to Fall Adding further support to oil prices, US crude stockpiles declined for a seventh consecutive week. Market sources citing data from the American Petroleum Institute reported that crude inventories fell by 6.8 million barrels during the week ending May 29. The sustained decline in stockpiles suggests strong demand and tighter supply conditions in the world’s largest economy. Investors are now awaiting official inventory figures from the US government for additional market direction. Dollar Approaches 160 Yen Level Currency markets also reacted to the evolving geopolitical situation. The US dollar briefly touched the 160-yen level before retreating slightly as traders became cautious about potential intervention by Japanese authorities. The dollar later traded near 159.86 yen. The 160-yen mark remains a closely watched level because previous moves beyond it have prompted action from Japanese policymakers seeking to stabilize their currency. The euro remained relatively stable at $1.1627. AI Boom Continues to Support Global Stocks Despite rising geopolitical risks, artificial intelligence-related stocks continued to drive gains in equity markets. Stock indexes in Japan and Taiwan reached record highs as investors maintained confidence in AI-driven growth opportunities. Wall Street also recorded modest gains overnight, supported by strong performance in the technology sector. Shares of chipmaker Marvell Technology surged 32.5 percent to a record high after Nvidia Chief Executive Jensen Huang described the company as a potential trillion-dollar business during the Computex technology conference in Taipei. The AI sector has largely remained resilient despite growing uncertainty in global markets. Bitcoin Falls to Two-Month Low Cryptocurrency markets moved sharply lower as investors reduced exposure to riskier assets. Bitcoin dropped nearly 10 percent over three trading sessions and fell to a two-month low of $66,123. Analysts said geopolitical uncertainty and changing interest rate expectations contributed to the decline. The broader cryptocurrency market also experienced significant losses as traders shifted toward safer investments. Investors Reassess Interest Rate Outlook Fresh US economic data added another layer of complexity to financial markets. Job openings in the United States recorded their largest increase in five years during April, signaling continued strength in the labor market. The data reduced expectations that the US Federal Reserve would cut interest rates in the near future. Instead, markets have started pricing in the possibility of rate increases later this year. Analysts believe stronger-than-expected employment data could further support the US dollar and reinforce expectations of tighter monetary policy. Markets Brace for More Volatility Investors are now closely watching upcoming US economic reports, including services sector data and employment figures due later this week. At the same time, developments in the Gulf remain a major source of uncertainty. With oil supplies under pressure, geopolitical tensions rising, and central banks reassessing interest rate paths, financial markets could face continued volatility in the days ahead. The combination of higher oil prices, military tensions, and shifting monetary policy expectations is likely to keep investors on edge as global markets navigate an increasingly uncertain environment.