Japan's yen surged sharply after Tokyo issued a strong warning that it may directly intervene in currency markets to stop the yen from weakening further. Japanese officials have a history of stepping into foreign exchange markets by buying yen and selling dollars when they judge moves to be excessive or disorderly. The yen has been under sustained pressure as the gap between Japanese interest rates and higher rates in the US keeps traders selling yen to buy dollar-denominated assets. When that gap is wide, it becomes profitable to borrow cheap yen and invest in higher-yielding currencies, a trade known as the carry trade. A direct intervention would mean Japan's finance ministry instructing the Bank of Japan to buy yen in large volumes, which can quickly reverse sharp moves. Previous interventions in 2022 briefly pushed the yen stronger by several percentage points before pressure resumed. Watch whether the yen holds its gains or drifts weaker again, which would test Tokyo's willingness to follow words with actual market action. Any confirmed intervention would ripple through dollar and bond markets globally.
Qatar's foreign ministry said mediators including Qatar, Pakistan, and Oman have reached "very progressive stages" in efforts to end the US-Iran war, pushing Brent crude down more than four percent.
Qatar confirmed it is mediating between the US and Iran but said no direct talks are currently planned. The clarification follows conflicting statements from President Trump, who claimed talks are under way, and Tehran, which denied any dialogue is happening.
Saudi Aramco reported sharply higher second-quarter 2026 profits as the Iran war restricts global oil supply and pushes crude prices up. Other oil supermajors also posted outsized earnings, raising concerns about sustained fuel cost pressure for importing economies.
President Trump called current Iran negotiations the "last chance" to end five months of conflict, pushing oil prices higher. Tehran denied formal talks are taking place, raising the risk of a diplomatic breakdown with direct consequences for global energy markets.
