Dollar Set for Rebound Amid Rising Middle East Tensions

The dollar is poised for a rebound as Middle East tensions escalate, increasing demand for haven assets. The greenback recently faced its first weekly decline due to surging oil prices and inflation concerns. Meanwhile, financial markets react to retaliatory threats between the U.S. and Iran, impacting global currencies.

The dollar is positioned for a rebound on Monday amid intensifying Middle East tensions, which have heightened demand for safe-haven assets.

After closing its first weekly decline since the Iran conflict began, the greenback is regaining strength due to surging oil prices and subsequent inflation concerns. Central banks are adopting a hawkish stance in response. Over the weekend, U.S. President Donald Trump threatened Iran's power grid while Tehran vowed reprisals, impacting regional currencies like the euro and yen.

This escalating conflict threatens essential civilian infrastructure, affecting millions who depend on water desalination. Financial markets reacted swiftly, with major central banks holding rates steady but signaling caution over future economic impacts. Global currencies and markets remain volatile amid these developments.

(With inputs from agencies.)