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 on interest rates, with the greenback extending broad gains across major currency pairs.
The U.S. dollar strengthened due to rising Treasury yields and growing market bets on a more hawkish Federal Reserve stance.
This shift in sentiment has provided a tailwind for oil prices, which had been under pressure in recent sessions.
The currency move reflects a broader repricing of monetary policy expectations, with investors adjusting positions ahead of key economic data releases.
Meanwhile, the Japanese yen weakened significantly, briefly touching a two-year low of 161.93 against the dollar before settling at 161.59.