War renews dollar strength and boosts oil
The war in the Middle East, along with the closure of the strait and the shutdown of Saudi oil transportation routes, has led to a significant increase in oil prices. This has prompted investors to turn to the US dollar as a safe-haven currency. Military tensions, especially with the increasing missile attacks by the Houthis and the failure of diplomatic efforts between Iran and the Gulf countries, have caused a reduction in oil supplies and an increased demand for dollars to purchase oil, which has boosted its value relative to other currencies. The market also expects the demand for the dollar to remain high in the coming period, as the Federal Reserve approaches its first interest rate hike in over two years.
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