Dollar Surges to New Highs as Oil Prices Top $100

The US dollar has surged to new highs as oil prices topped $100 per barrel for the first time since May, driven by attacks on Saudi oil tankers and renewed trade tensions.

Oil prices climbed back above $100 a barrel after Yemeni Houthi attacks on two Saudi oil tankers in the Red Sea, expanding the conflict to the second major trading chokepoint. US President Donald Trump pledged a significant military response against Iran and its Houthi allies.

The strong dollar has weighed on other currencies, with the yen near a 40-year low of about 163.86 per dollar. The U.S. Secretary of State warned about excessive yen volatility and urged the Bank of Japan to raise rates to stabilize the exchange rate.