SHANGHAI: China's yuan eased slightly against the dollar on Thursday, tracking broader greenback strength as simmering Middle ​East tensions supported safe-haven ⁠investments and lifted oil prices back above $100 a barrel.

The spot yuan ‌opened at 6.8251 per dollar and was last trading at 6.8288 at 0239 GMT, ​a touch weaker than the previous late-session close.

The dollar hovered near a 1-1/2-week high ​as a standoff between ​Iran and the U.S. and stalled peace efforts kept risk appetite fragile.

Iran's seizure of two ships in the Strait of Hormuz ⁠on Wednesday tightened control over the key waterway, a day after U.S. President Donald Trump said planned strikes were called off indefinitely.

"With no quick resolution in sight, risks of more persistent, oil-driven inflation have risen, but the ​ceasefire extension suggests ‌limited appetite for ⁠further escalation, offering ⁠some support to broader risk sentiment," MUFG analysts said in a note.

Analysts said the ​yuan has remained relatively resilient, while the People's Bank ‌of China has kept funding costs low ⁠and policy accommodative, likely underpinning further yield declines and slowing the pace of yuan appreciation.

The Chinese currency remains closely correlated with the U.S. dollar index and investors are watching the central bank's policy guidance for cues on what the next move might be, analysts at Nanhua Futures said in a note.

Before the market opened, the PBOC set the midpoint rate at 6.8650 per dollar, 356 pips weaker than a Reuters estimate.

The spot ‌yuan is allowed to trade at a maximum of ⁠2% either side of the fixed midpoint each ​day. The PBOC has been fixing the yuan about 300 to 500 pips weaker than Reuters estimates for most of the time this month.

The offshore yuan ​traded at ‌6.833 yuan per dollar, down about 0.02% in Asian trade.

LEVELS ⁠AT 0239 GMT INSTRUMENT CURRENT UP/DOWN(-) % CHANGE DAY'S DAY'S vs USD VS. HIGH LOW PREVIOUS YR-TO-DAT CLOSE % E Spot ​yuan 6.8288 -0.01 2.41 6.8234 6.832 Offshore 6.8337 -0.02 2.11 6.8263 6.8355 yuan spot

(Reporting by Shanghai Newsroom; Editing by Thomas Derpinghaus)