The Bank of Japan raised rates to 1% amid a busy week for monetary policy, overshadowing geopolitical developments in oil markets.
Markets shifted focus to central banks as the Bank of Japan delivered a quarter-point rate hike to 1%, the highest level in 31 years. The move aligned with expectations but underscored the week’s crowded monetary policy calendar, including decisions from the Reserve Bank of Australia and other major central banks.
Brent crude remained above $80 per barrel despite a 5% slide on Monday, as vessel-tracking data showed no significant increase in tanker traffic through the Strait of Hormuz. Global equities extended gains, with Asian and European indexes rising, while U.S. futures traded flat ahead of further developments.
The preliminary U.S.-Iran deal continued to influence sentiment, though details remained scarce. Traders awaited clarity on whether the agreement would ease oil supply concerns or prove short-lived.