The Japanese yen depreciated toward 159 per dollar on Monday, giving back gains from the previous session as oil prices rallied following an escalation in US-Iran tensions over the weekend. President Donald Trump said the US Navy fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored warnings to halt while departing Hormuz. Tehran also reversed plans to reopen the Strait of Hormuz after Washington refused to lift its blockade on Iranian ports and stated it would not take part in a second round of negotiations. Oil prices surged more than 5%, exerting downward pressure on currencies of oil-importing economies such as Japan. Meanwhile, markets remain split on whether the Bank of Japan will raise interest rates later this month, as Governor Kazuo Ueda has avoided pre-committing to an April hike. Still, the BOJ is widely expected to upgrade its inflation forecasts at this month’s meeting, reflecting elevated energy costs.