NZD Suffers as Escalating Tensions Push Oil Prices Higher

The New Zealand Dollar (NZD) suffered losses against the US Dollar (USD) on Tuesday, weighed down by a risk-off mood fueled by escalating tensions in the Middle East and rising oil prices.

The NZD/USD pair reversed its gains from Friday's high of $0.5900, dropping to session lows at $0.5836, below the 200-day Simple Moving Average (SMA) at $0.5850.

Market sentiment remains subdued as tensions between the US and Iran escalate further, with Tehran threatening to strike US oil interests in Gulf countries if attacked again.

The Strait of Hormuz, which carries around 20% of global oil supply, saw limited traffic on Tuesday, pushing Brent Oil prices above $97.00 per barrel, a nearly 9% appreciation so far in September and 38% above July lows.