Oil prices extended gains for a third consecutive session on Wednesday, while the dollar hovered near the psychologically significant 160 yen level, as renewed hostilities in the Gulf unsettled global markets following a breakdown in U.S.–Iran peace talks.
U.S. West Texas Intermediate (WTI) crude futures for July delivery rose more than 1% to $94.81 a barrel, while Brent crude, the international benchmark for August delivery, climbed 0.88% to $96.84.
Currency markets reflected heightened caution. The U.S. dollar briefly touched 160 yen before retreating, as traders weighed the likelihood of possible intervention by Japanese authorities at that threshold.
Equity markets showed a mixed tone. S&P 500 futures declined, signaling a weaker opening on Wall Street, even as the artificial intelligence-driven rally in Asia continued. Major indices in Taiwan and Japan surged to record highs, while South Korean markets remained closed for a holiday session.
Geopolitical risk dominated sentiment after the U.S. Central Command reported that Iran launched missiles toward Kuwait and Bahrain. According to the statement, the attacks were either intercepted or missed their targets. U.S. forces responded by striking Iran’s Qeshm Island in the Strait of Hormuz.
Iran’s Islamic Revolutionary Guard Corps later claimed responsibility for an attack targeting the headquarters of the U.S. Fifth Fleet. Despite last week’s announcements from both Washington and Tehran suggesting a provisional agreement to pause hostilities, no formal deal has been signed.
“Last week… the trajectory was toward some kind of memorandum of understanding, and markets were optimistic on the belief that this was about to happen,” said Chris Weston, head of research at brokerage firm Pepperstone in Melbourne, underscoring the sudden reversal in sentiment.
