Houthis

The U.S. Dollar Index pushed higher as traders weighed a stronger than expected Initial Jobless Claims reading and a sharp oil rally tied to rising Middle East tensions. EUR/USD weakened after soft Euro Area Retail Sales, while USD/JPY climbed as Treasury yields rose.

Oil prices remained under pressure as progress in Iran Oman talks reduced some supply risk premium while rising US crude inventories added to bearish sentiment. Technical traders are watching whether WTI can defend the $74–$75 zone and whether Brent can hold above $80–$81.

Crude oil futures dropped nearly 8% as traders priced in hopes of progress around the Strait of Hormuz, even as tanker movement has yet to confirm a reliable recovery. Tight U.S. crude inventories, weak demand signals, OPEC+ quota increases and shipping risks through Hormuz and Bab el-Mandeb now shape the next move for WTI and Brent.

Gold stabilized Friday after a sharp selloff, helped by softer crude prices and easing Treasury yields. The rebound lacked conviction as rising rate-hike expectations and a firm dollar kept XAUUSD capped ahead of next week’s FOMC meeting.

Crude prices slipped Friday after reports of renewed diplomatic efforts involving Iran, Pakistan and China encouraged profit-taking. The move did little to erase the week’s surge, with WTI up 9.21% and Brent higher by 9.85% as shipping risks around Hormuz and the Red Sea remained elevated.

Oil prices are holding a bullish tone as Middle East tensions raise the risk of disruption through the Strait of Hormuz and the Red Sea. WTI has broken above a key area near $85, while Brent’s move above $90 keeps higher targets in focus for technical traders.

Natural gas is extending its rebound as traders position for stronger demand tied to favorable weather conditions. Oil markets are pushing toward fresh highs as tensions involving the U.S., Iran, Houthis, Saudi Arabia, and key shipping routes keep supply-risk premiums elevated.

EUR/USD has retreated to 1.1415 as the US dollar firms modestly amid rising Middle East tensions and renewed inflation concerns. Technical traders are watching a bearish flag structure, with 1.1326 and 1.1500 framing the near-term range.