Oil prices rise again after attacks on vessels in the Red Sea

Oil prices rose on Wednesday as deadly attacks on ships in Bab al-Mandab Strait escalated the conflict. Brent gained about 1.2% to $90 a barrel and WTI advanced 1.3% to $84.30.

US futures ticked up Wednesday ahead of the July CPI report, which could shape near-term rate expectations. S&P 500 futures rose 0.1%, Nasdaq-100 futures 0.3%, and Dow futures were nearly flat. Asia markets were mixed, Kospi jumped over 3%, Nikkei added 0.1%, and ASX 200 fell 0.6%.

Investors await July CPI report today, expected to show 3.4% headline inflation and 2.5% core on a yearly basis, which is still above the Fed's 2% target. Thursday's PPI is the next test, needing to confirm June's softer wholesale inflation reading was real.

In the currency market, the Japanese yen is drifting toward the psychologically key 160 level against the dollar, trading around 159 Wednesday after giving back roughly half of the gains from the recent US-Japan currency intervention.

Gold has regained momentum and is approaching the $4,400 level after finding support around $4,350, following a brief pullback from Tuesdays ten-week high of $4,435.

The key driver is the outlook for Federal Reserve policy. The weaker July Nonfarm Payrolls report reduced expectations for a September rate hike, bringing the probability of a hike to roughly 50%. Silver is trading around $65.40, up 1.1%.