Oil jumped in early Asia trading as Middle East tensions accelerated, while the dollar held gains after hawkish comments from Federal Reserve Chair Kevin Warsh fueled bets on a rate hike next month. Markets reacted to escalating geopolitical risks in the region, driving crude prices higher despite broader uncertainty. The dollar’s strength reflected investor expectations of tighter monetary policy, even as equity futures showed signs of caution.

Traders are closely monitoring developments in Iran and Fed signaling for further direction. The interplay between geopolitical risk and central bank policy continues to shape near-term market dynamics. Safe-haven flows and energy demand concerns are underpinning oil’s resilience.

Meanwhile, US stock futures remain under pressure as investors weigh inflation risks against growth concerns.