US Dollar Soars on Rising Oil Prices, Swiss Franc Hits 13-Month Low

The US Dollar (USD) has strengthened to its highest level in three weeks, buoyed by rising oil prices and escalating tensions in the Middle East. The conflict between the US and Iran has pushed crude prices higher, increasing expectations of a Federal Reserve rate hike.

The US Dollar Index (DXY), which tracks the value of the Greenback against six major currencies, currently trades at 101.45, its highest level since July 22nd. This surge in demand for the USD is causing the Swiss Franc to hit a 13-month low, despite its traditional appeal as a safe-haven asset during times of geopolitical stress.

The conflict has spread beyond the Strait of Hormuz, with Yemen's Ansar Allah group attacking two Saudi oil tankers in the Red Sea. US President Donald Trump warned that major military punishment would be inflicted on both Iran and the Yemeni rebel group if they continue to disrupt oil supplies.