The Japanese yen has fallen to its lowest point since July 2024, driven by rising oil prices amid escalating conflict in the Middle East.

As Brent crude oil prices approached $100 per barrel following one of the most volatile weeks on record, the yen depreciated by 0.1% against the US dollar, reaching 159.46. This decline comes as Iran pledges to continue its effective blockade of the Strait of Hormuz, leading investors to brace for further market instability.

Rising oil prices are increasing inflationary pressures in Japan, which relies heavily on Middle Eastern oil. Concurrently, the US dollar has strengthened as investors seek safe-haven assets.

Japan's Finance Minister, Shunichi Suzuki, stated on Friday that Japanese authorities are maintaining very close communication with their US counterparts, even more frequent than usual. However, Minister Suzuki declined to comment on the possibility of currency intervention.