Oil is above $110, the dollar is declining, and gold is heading for a weekly decline economy

Oil prices moved higher with the start of Asian trading, driven by continuing tensions in the Middle East and the faltering diplomatic track between America and Iran, at a time when the Strait of Hormuz remained under pressure, which kept the markets in a state of intense anticipation, according to what was reported by the “Investing.com” platform.

Brent crude for July delivery recorded an increase of about 0.4% to $110.87 per barrel, while West Texas Intermediate crude settled at about $105.20, according to platform data. These levels come after a strong rise that pushed prices to their highest levels since the 2022 crisis, with escalating fears of the expansion of the war.

Investing.com indicated that the continued closure of the Strait of Hormuz, through which about 20% of global oil supplies pass, reinforces expectations that the market will remain in a state of relative scarcity, especially with the continued US naval blockade on Iranian oil exports, in exchange for Tehran’s adherence to its control over the vital corridor.

The platform quoted ANZ analysts as saying, “The gap between the paper and the actual market has begun to shrink with the emergence of signs of a scarcity of supplies for the first time since the outbreak of the war,” indicating that pressures are shifting from expectations to the actual reality of the markets.

The dollar declines due to Japanese intervention

In the currency market, the dollar came under noticeable pressure after the Japanese authorities intervened to support its currency, as it fell by about 3% against the yen in the largest daily decline since late 2024, reaching about 155.5 yen before settling near 156.52 yen, according to what Reuters reported.

Reuters reported that this move came after the yen reached its lowest levels since July 2024, prompting the Japanese authorities to intervene directly in the market. “The intervention was not surprising in light of the recent statements from the Ministry of Finance,” said John Felice, a macroeconomic analyst at BNY.

The dollar index also declined by about 0.80% to 98.06 points, also affected by the rise in major currencies, as the euro rose by 0.51% to $1.1733, and the British pound rose by about 0.98% to $1.3607.

Gold is under pressure from high interest rates

On the other hand, gold prices remained under pressure from expectations of continued high interest rates, which limited its attractiveness despite geopolitical tensions. According to what was reported by Qatar News Agency (QNA), gold fell in spot transactions by about 0.1% to $4,614.98 per ounce, heading towards recording a weekly loss of approximately 2%.

US futures contracts for June delivery also fell by 0.1% to $4,626.40, while silver rose 0.4% to $73.99, platinum fell 0.2% to $1,981.25, while palladium rose 0.1% to $1,525.36.