Dollar Surges on Oil Price Spike and Hawkish Fed Policy

The U.S. dollar is strengthening due to increased oil prices and hawkish Federal Reserve policy.

Renewed Middle East tensions have pushed Brent crude above $100 a barrel, while WTI crude is around $92 a barrel as of October 1, 2026.

The dollar index was at 101.7 on October 1, putting it on track for a 2% monthly gain, its strongest monthly advance since June.

Higher energy prices could keep inflation elevated, while resilient U.S. economic activity may give the Federal Reserve less room to ease policy.