Crude oil prices staged a recovery from recent lows on Tuesday, supported by a firmer U.S. dollar and shifting expectations for Federal Reserve policy.
The rebound in energy markets comes as traders recalibrate their outlook for U.S. interest rates, with sentiment tilting toward a more hawkish stance from the central bank.
The U.S. dollar held steady against major peers, benefiting from the renewed focus on restrictive monetary policy.
This strength in the greenback provided a floor for oil prices, which had previously faced pressure from broader risk-off sentiment.
The currency move underscores the ongoing interplay between rate expectations and commodity valuations, with higher yields often supporting dollar-denominated assets.
Meanwhile, the Japanese yen continued its slide, flirting with a 40-year low against the dollar.