Bank of Japan Deputy Governor UCHIDA said he will consider the timing and pace of further rate hikes while assessing the impact of the Middle East conflict.

With the Trump administration set to complete a 172 mln-barrel release intended to ease fuel price spikes tied to the Iran war, the U.S. Strategic Petroleum Reserve (SPR) has fallen to about 340 mln barrels—the lowest level since 1983, DOE data on Monday showed. If completed, the release would be the second-largest draw on record and leave roughly 243 mln barrels, about one-third of statutory capacity. The drawdown reduces U.S. flexibility to respond to future supply disruptions, the DOE said, and the reserve is being managed to stabilise oil markets and guard against supply shocks.

German think-tank ZEW said this could ease substantial pressure from energy prices and inflation, benefit energy-intensive industries and households, and bolster domestic demand.