Quick overview

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The greenback strengthened as nervous investors sought refuge. However, the cautious actions indicate that markets were preparing for Iran’s reaction to US strikes on its nuclear facilities, which have intensified the conflict in the Middle East.

 

The euro was down 0.3 percent at $1.148, while the Australian dollar, frequently viewed as a risk proxy, fell to a one-month low and was last down 0.67 percent at $0.6408. Lastly, the dollar index, which measures the dollar’s strength, was up 0.12 percent at 99.37.

Iran’s Press TV reported that the Iranian parliament had approved a measure to close the strait. Iran has never actually closed the Strait despite previous threats. Tensions around the world increased on Monday as Iran and Israel exchanged missiles and airstrikes over Tehran’s anticipated reaction to a US attack on its nuclear facilities.

Major changes occurred in the oil market, where crude prices reached a five-month high and global stocks fell following the US attacks on Iran’s nuclear installations and reports that President

Market players anticipate further price increases as concerns grow that an Iranian retaliation might involve closing the Strait of Hormuz, through which a fifth of the world’s crude supply passes.

The current geopolitical escalation is the fundamental catalyst for Brent to rise and possibly spiral towards $100, with $120 per barrel looking increasingly plausible. Donald Trump suggested that the Islamic Republic’s government should be changed