Oil markets kicked off the week on a strong note, with crude pushing higher as tensions in the Middle East showed no signs of cooling. Supply concerns around key shipping routes kept traders on edge, while risk sentiment across global markets turned cautious. Energy-driven inflation fears are starting to creep back into the conversation.

In currencies, the U.S. dollar found solid footing as investors leaned into safer assets. The yen struggled to gain traction, especially with the Bank of Japan sticking to its ultra-loose stance. Meanwhile, traders are keeping positions light ahead of upcoming central bank signals.

Geopolitics remains front and center, with Donald Trump taking a firm stance on Iran. His latest comments have reduced hopes for a quick resolution, which could keep volatility elevated across oil and forex markets in the near term.