Dollar Stands Tall as Gulf Tensions Fuel Oil Price Surge, Fed Hike Bets
Iran's attacks on ships using a disputed route end a cease-fire, prompting U.S. airstrikes and boosting oil prices toward $80 a barrel, reports indicate.
- On Tuesday, President Donald Trump ordered airstrikes against Iranian radar installations and air defense sites after Iran attacked several ships transiting the Strait of Hormuz.
- The military escalation and Washington's economic response appear to have nullified the memorandum of understanding , which lasted from April to June before collapsing following recent regional hostilities.
- Washington rescinded temporary sanctions waivers on Iranian oil exports on Wednesday, though China continues purchases; Brent crude jumped to nearly $80 a barrel amid Middle East tensions.
- Rising oil prices pushed Treasury yields to seven-week highs, increasing the implied probability of a Fed rate hike this year to about 87%, while the Japanese yen struggles near 40-year lows.
- During a Wednesday press conference in Turkey, Trump suggested further strikes may occur and floated reimposing a U.S. blockade on Iran, threatening further regional escalation.
18 Articles
18 Articles
The dollar is about stability in front of the main pairs developed this Thursday, supported by the prospect of a more restrictive monetary policy by the Federal Reserve (Fed). The American exchange continues to show a low correlation with the advance of oil prices, in the middle of the military escalation between the United States and Iran, putting the developments in the geopolitical field in the background. Near 8:55 (Brasília time), the DXY i…
Channel News Asia
Dollar stands tall as Gulf tensions fuel oil price surge, Fed hike bets
HONG KONG, July 9 : The U.S. dollar held firm against most major currencies on Thursday as renewed Gulf tensions revived safe-haven bids while surging oil prices boosted rate hike bets, keeping the Japanese yen under pressure.The dollar fetched 162.41 yen, hovering near the strongest level since July 1. The e
Soaring oil prices, soaring loan rates, falling stocks: inflationary fears are rekindled.
The oil price has shot up again due to rising tensions in the Gulf region. On Wednesday, it was heading towards 80 dollars per barrel.
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