US-Iran tensions underpin dollar as yen nears 40-year low

US-Iran tensions lifted Brent crude over 1.3 percent to 95.31 dollars per barrel after new US strikes on Iran and Houthi attacks on Saudi oil tankers raised supply disruption risks. The dollar index held steady at 101.11 as rising oil prices stoked inflation fears, pushing two-year US Treasury yields to a 17-month high. The Japanese yen hovered near a 40-year low at 163.1 per dollar despite speculation the Bank of Japan may accelerate rate hikes.