MUFG: US-Iran tensions increase energy risks, Asian currencies may come under pressure

(1) Mitsubishi UFJ Bank Senior Foreign Exchange Analyst Lloyd Chan stated that as US-Iran tensions escalate, energy supply risks are becoming the core focus of market attention. (2) He pointed out that the latest developments include US President Trump warning that if Iran attacks ships passing through the Strait of Hormuz, the US will target Iran's bridges and electricity infrastructure. (3) The analyst believes that the key market risk lies in whether the current conflict will evolve from a new escalation phase into a stage that triggers a more widespread global energy shock. (4) Chan added that disruptions in oil transportation in the Gulf region, combined with rising US Treasury yields, could put pressure on Asian currencies. (5) The USD/Philippine Peso is quoted at 61.721, with little change; the USD/Thai Baht is flat at 33.75.