The Japanese yen has fallen to its lowest level since July 2024 amid escalating tensions in Iran.

As the Middle East wars intensify and push up oil prices, the Japanese yen fell to its lowest level since July 2024. With Brent crude oil prices approaching $100 per barrel after experiencing the largest weekly fluctuations in history, the yen fell 0.1% against the US dollar to 159.46. As Iran pledged to continue effectively blockading the Strait of Hormuz, investors are preparing for greater turmoil. Rising oil prices are exacerbating inflation pressure in Japan, which heavily relies on Middle Eastern oil. At the same time, with investors seeking safe haven assets, the US dollar is standing out.