Oil supply risks have heightened due to recent disruptions in Saudi export infrastructure, alongside renewed concerns over key maritime chokepoints, the Strait of Hormuz and Bab el-Mandeb, according to FX Street.
OCBC strategist Christopher Wong highlighted that these factors continue to keep oil supply risks elevated, reflecting ongoing geopolitical tensions and vulnerabilities in critical oil transit routes.
For Japanese markets, which are heavily reliant on stable energy imports, increased supply risks could influence FX and equity volatility, underscoring the importance of monitoring developments in Middle Eastern oil infrastructure and shipping lanes.