Dollar Rises Amid Regional Tensions Escalation and Strait of Hormuz Closure

The U.S. dollar rose against most global currencies, driven by escalating geopolitical tensions involving Iran. This development fueled inflation fears, bolstering the likelihood of central banks raising interest rates. The dollar gained 0.1% against the Japanese Yen (161.92 yen), while the Euro fell 0.1% (to $1.1403) and the British Pound also dropped 0.1% (to $1.3383). Similarly, the Australian dollar declined 0.1% (to $0.6942), and its New Zealand counterpart fell 0.1% (to $0.5757). This currency movement followed renewed conflict involving Iran over the weekend, with reports indicating Tehran targeted Gulf states on Sunday and announced the re-closure of the vital Strait of Hormuz. Concurrently, the United States declared it carried out strikes on Iranian targets. Oil prices surged with the resumption of trading in Asia, as Brent crude futures climbed 3.3% to reach $78.49 per barrel.