Dollar Rises Amid Iran Conflict and Higher Energy Costs
The US dollar rose against the euro and yen as conflict in the Middle East drove oil prices higher. Investors sought safe-haven assets following strikes in Iran.
The United States dollar climbed against major currencies on Monday as escalating tensions in the Middle East drove investors toward safe-haven assets and pushed energy prices higher. Market sentiment shifted sharply following military actions by the United States and Israel against targets in Iran, raising concerns over potential disruptions to global energy supplies, particularly through the Strait of Hormuz.
The geopolitical situation worsened following reports from the Israeli military that its air force had killed Iran's Supreme Leader Ali Khamenei, a claim later confirmed by state media. In retaliation, the Iranian Revolutionary Guard targeted oil tankers associated with the United States and the United Kingdom, while explosions were reported in the skies over the United Arab Emirates and Qatar.
