Oil advances, yen climbs as US markets shut for Labor Day

Headlines:

Markets:

• WTI crude oil gained 0.9% to reach $92.30
• USD/JPY fell 1% to 154.65, its lowest level since February
• Gold declined 0.8% to $4,390
• Germany's DAX dropped 0.4%, while France's CAC 40 was unchanged
• US markets were closed for the Labor Day holiday

Although the US had a long weekend, market activity was substantial at the start of the new week.

Oil prices kept climbing as US-Iran tensions escalated over the weekend. New strikes near the Strait of Hormuz kept markets nervous, pushing oil higher. WTI crude advanced 0.9% to $92.30, and Brent crude rose over 1% to $97.50. The $100 per barrel level appears to be approaching quickly.

Meanwhile, the Japanese yen saw strong buying, with USD/JPY falling sharply from around 156.00 to a session low of 154.05. The decline was rapid and was amplified after breaking below the 155.00 level, a move not seen since February.

The pair remains 1% lower on the day at 154.65, as traders assess the daily close below the round number.

European stocks remained cautious, with higher oil prices and interest rate expectations weighing on sentiment. Investors are also watching for the ECB policy decision later this week for further direction.

In commodities, gold fell to $4,390, down 0.8% on the day, as precious metals had a slow start to the week.

Because of the US holiday, US stock and bond markets are closed today. This will likely result in quieter conditions during North American trading hours.