Dollar Soars as Middle East Tensions Push Oil Prices Higher

The US dollar maintained its strength on Wednesday following a surge in oil prices due to renewed hostilities in the Middle East.

Rising Treasury yields and expectations of a Federal Reserve rate hike have reinforced the currency's safe-haven appeal, despite recent economic data coming in below forecasts.

The U.S. launched airstrikes on Iran on Tuesday, prompting Iranian retaliation and pushing oil prices higher. Brent futures rose 0.92% to $95.52 per barrel, while US West Texas Intermediate crude was up 0.89% at $91.02.

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