Dollar Strengthens Amid Escalating Iran-US Tensions

The US dollar strengthened on Wednesday due to rising tensions in the Gulf region. The ongoing Iran-US conflict has led to concerns about an energy shock, causing investors to seek safe-haven assets.

Oil prices increased after reports of separate attacks on shipping by the United States and Yemen's Iran-aligned Houthis, with Tehran stating that the Strait of Hormuz would remain closed unless Washington accepts its conditions.

Analysts believe that the upcoming US inflation data will provide crucial information about the Federal Reserve's policy trajectory. The Fed Bank of Chicago President Austan Goolsbee emphasized his concern over high inflation rather than labor market weakness.