Dollar Unfazed by Oil Price Drop Amid Escalating US-Iran Tensions

The US dollar index DXY held steady despite a decline in oil prices by around 3%.

This stability is attributed to safe-haven demand driven by escalating tensions between the US and Iran, with President Trump considering a possible expansion of military attacks on the country.

The Iran-backed Houthis launched a missile and drone attack on two Saudi Arabian oil tankers in the Red Sea, expanding disruptions beyond the Strait of Hormuz and threatening oil shipments in the region. The move has raised concerns about Saudi oil exports from Yanbu, a Red Sea hub.

Treasury yields also fell slightly after posting a 1.5-year high earlier in the session.