Headlines:

• Reminder: US markets are closed for Labor Day - what traders need to know
• USD/JPY tumbles lower, breaks below 155 for the first time since February
• Oil prices climb as US-Iran missile strikes keep Hormuz risks elevated
• Saudi Aramco facility attacked again; extent of the damage still being assessed
• Gold erases Waller-driven gains as rate hike odds rise after hot NFP; all eyes on US CPI next
• China's gold buying spree rolls on as reserves climb again in August
• Germany factory output slumps in July as autos hit the brakes
• Eurozone investor confidence jumps to four-year high
• Eurozone Q2 GDP gets a trade boost as growth accelerates to 0.6%

Markets:

• WTI crude oil up 0.9% to $92.30
• USD/JPY down 1% to 154.65, lowest since February
• Gold down 0.8% to $4,390
• Germany DAX -0.4%, France CAC 40 flat
• US markets closed in observance of Labor Day

Even with an extended weekend in the United States, the new week began with plenty of market action.

Oil prices continued to grind higher as tensions between the US and Iran picked up through the weekend. Fresh strikes were exchanged near the Strait of Hormuz, keeping markets on edge and pushing oil upward. The strait is one of the world's most important oil chokepoints, and any disruption there carries implications for global crude shipments, which is why the repeated strikes have kept a persistent risk premium in prices. WTI crude rose 0.9% to $92.30, while Brent crude gained more than 1% to $97.50 on the day. $100 oil appears to be drawing closer rather than further away. Also in the region, a Saudi Aramco facility was attacked again, with the extent of the damage still being assessed.

Meanwhile, the Japanese yen caught a strong bid as USD/JPY fell sharply from around 156.00 to a low of 154.05 during the session. The decline was swift and was exacerbated by a break below the 155.00 mark, the first such move since February this year. Moves of this size in USD/JPY often draw attention to the risk of official intervention, as Japanese authorities have repeatedly flagged concern about excessive yen volatility, though no action was reported in this session. The pair remained down 1% on the day at 154.65 as traders weighed whether it would close below that figure level.

In other markets, European stocks stayed cautious, with higher oil prices and rate expectations keeping sentiment in check. The DAX fell 0.4% while the CAC 40 was flat. The backdrop for the region is mixed: German factory output slumped in July as autos hit the brakes, but eurozone Q2 GDP growth accelerated to 0.6% on a trade boost and investor confidence jumped to a four-year high. Investors are also looking ahead to the ECB policy decision later this week for further clues on the rate path.

In the commodities space, gold slipped to $4,390, down 0.8% on the day, as precious metals got off to a slow start to the week. The pullback comes even as China's central bank continued its gold buying spree, with reserves climbing again in August, while market attention now turns to upcoming US CPI data after hot NFP figures lifted rate hike odds.

With the Labor Day holiday in the US, there was no trading in American stocks and bonds today, which is expected to keep activity quieter heading into the North American session later.