Dollar Rises as Gulf Tensions Escalate Amid Oil Price Surge

The US dollar strengthened on Wednesday due to renewed tensions in the Gulf region. The price of oil rose after the United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping.

Tehran said that the Strait of Hormuz would remain closed unless Washington accepts its conditions, causing investors to buy safe-haven dollars when concerns about the economic impact of the energy shock intensify.

Fed Bank of Chicago President Austan Goolsbee stated his concern over high inflation rather than labor market weakness. Economists expect data due later in the session to show inflation picked up last month after easing in June.