Dollar Firm as Middle East Tensions Drive Oil Prices Higher

The US dollar held firm on Wednesday as hostilities in the Middle East pushed oil prices higher and revived inflation concerns.

Renewed fighting between the US and Iran prompted Iranian retaliation, leading to a nearly 1% increase in early trade for Brent futures to $95.52 a barrel and WTI crude to $91.02.

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

The dollar index stood at 99.67, while Treasury yields rose to 4.8%, driving investors towards safe-haven currencies like the US dollar.