Despite signs of rising US inventories, oil prices increased under the impact of heightened tensions related to Iran, Brent rose above $69 and WTI near $65 as the market worries about potential supply disruption if nuclear talks fail, A US oil industry report showed a significant rise in inventories, but traders focused more on geopolitical risks, Market participants are now awaiting OPEC and International Energy Agency reports on supply outlook and potential surplus this year.

Trump has said that if talks with Iran fail, he may send a second aircraft carrier to the Middle East, He expects the second round of US-Iran negotiations to take place next week and emphasized that either an agreement will be reached or strong action will be necessary, An Axios reporter noted that this move is part of preparations for any potential military action.

BCA Research has warned that yen carry trades could become a "ticking time bomb" and unwind suddenly if market conditions change, In this strategy, investors borrow low-yielding yen to buy higher-yielding assets abroad, but if risky assets fall or the yen strengthens, the trade reverses quickly, Analysts have highlighted the possibility of a shock similar to 2008, 2015, and 2020 and recommend that medium- and long-term investors take long positions in yen against the dollar, Given the potential for a Bank of Japan rate hike and recent yen gains, if the currency begins to strengthen, a broad unwind of carry trades could cause a significant yen surge.

Ahead of the US January jobs report, Goldman Sachs warned that job growth may be much lower than market expectations, The bank forecasts only about 45,000 new jobs, below the consensus of around 70,000, Updates to the BLS “birth–death” model and weak employment data are the main factors behind this lower estimate, However, this situation mainly reflects a gradual cooling of the labor market and could encourage the Fed to keep interest rates steady.