Brent dropped below $103 a barrel at the weekly open after US President Trump said Russia and Ukraine had agreed to stop attacking each other’s energy sites, but it later recovered as Russian strikes continued, with Ukraine’s President Zelenskyy counting six hits on Monday. The Kremlin said ceasefire talks were still under way. Iran’s Revolutionary Guards then said they had set a third supertanker on fire in the Strait of Hormuz in two days, pushing Brent to just above $107, its highest in more than two weeks, and lifting the Dollar Index.
Impact Of Oil Price Movements On Currencies
Europe and Japan import nearly all their oil and pay in dollars, which can pressure the euro and yen when crude rises. The euro and yen make up 71% of the Dollar Index and account for about three-quarters of its rise from Monday’s low. The index fell to near 102.10 as Brent slid, then rose in steps to just above 102.50, its highest since April 2025; the climb from the September 9 low is about 4% after four straight weekly gains. With the US cash bond market shut for Columbus Day, the 10-year Treasury yield stayed at 5.24%.
