Dollar Strengthens After Iran Halts Negotiations, Oil Rises
The US dollar surged in early trading after reports that Iran had halted talks to reopen the Strait of Hormuz following Israel's military offensive against Hezbollah in Lebanon. Oil futures responded by rising 7% as markets assessed continued disruptions to global energy supplies.
Wall Street's Dollar Index rose 0.4% after initially trading flat. The greenback strengthened 0.4% against the euro and 0.3% against the yen, supported by expectations of geopolitical tensions that boosted safe-haven demand.
US Treasury yields also rose: the 10-year yield rose to 4.51% from 4.45%, while the 2-year yield rose to 4.08% from 4.03%. This surge indicates the market is increasingly assessing inflation risks from energy supply disruptions and regional tensions.
Investors are now assessing the short-term impact of the Iran-US talks delay on energy prices and global financial markets, including the possibility of additional pressure on the dollar and bond sectors.
Brent and WTI oil prices moved higher, reflecting limited optimism that energy flows through Hormuz remain disrupted.
Source: Newsmaker.id