Oil Firms as Yen Strength Threatens Further Dollar Declines

Crude is trading flat to slightly higher after a mostly bullish weekend. Fresh attacks hit vessels transiting the Strait of Hormuz late last week, and new fighting broke out in Lebanon over the weekend. US and Iran negotiations are stalled, with markets now watching for fresh sanctions on Iran expected from the White House this week. Dollar weakness is picking up steam, helped along by Japanese yields breaking above their 1996 highs, which could pressure the dollar further and support demand. The bias remains bullish with risk skewed to the upside.Yen chart by Ca-Ssis via iStock