Middle East Tensions Keep Investors on Edge

Financial markets remain cautious on Monday as investors assess the latest developments in the Middle East. The region has been plagued by tensions, and a recent US military attack on Iran-linked oil tankers has heightened concerns about energy security.

The US Dollar (USD) has strengthened against its rivals, but analysts at ING argue that it should be doing better given the high energy prices and strong labor market data. They attribute the currency's muted performance to the constructive investment environment and the inverse correlation between global equities and the USD.

The Strait of Hormuz tensions have pushed the price of West Texas Intermediate (WTI) oil higher, with it gaining nearly 1% on Monday to $90.00 per barrel. Gold (XAU/USD) has also been affected, losing about 0.7% on the day near $4,400.