Dollar Holds Firm Amid Escalating Middle East Tensions

The dollar remained steady on Wednesday as tensions in the Middle East escalated and oil prices rose nearly 1%.

Renewed hostilities between the US and Iran prompted Iranian retaliation, pushing Brent futures up 0.92% to $95.52 a barrel and US West Texas Intermediate (WTI) crude 0.89% firmer at $91.02.

Kumiko Ishikawa, a senior FX analyst at Sony Financial Group, noted that 'continued vigilance is needed over the situation in the Middle East today.'

The dollar index remained at 99.67, while markets priced in a 67% chance of a September Fed hike, up from around 40% a week earlier.