Dollar rises on Iran attacks after Iran launched a new wave of missiles and drones at Bahrain, Jordan, Kuwait and Iraq on Monday, while oil also moved higher.
The source article said the move in the U.S. currency showed safe-haven demand as the conflict spread across more Gulf states. It also said oil had already gained about 2% earlier in the week on wider war speculation tied to comments from an unnamed U.S. official. However, prices pushed higher again as the fresh attacks raised fears over Gulf energy sites and shipping routes.
Bahrain’s Interior Ministry told citizens and residents to stay calm and move to the nearest safe place as air raid sirens sounded. Meanwhile, Kuwait’s military said its air defenses were engaging hostile drones attributed to Iran. The article said the latest barrage widened the conflict beyond earlier strikes in Iraq and Jordan.
Dollar Rises on Iran Attacks
The report said the dollar’s advance matched a broader risk-off reaction in early Monday trade. Investors, it said, were positioning for a longer and wider conflict rather than a near-term end to the fighting. As a result, both oil and the dollar gained at the same time.
The article also pointed to an AWACS surveillance aircraft taking off from Prince Sultan Air Base. It said markets widely read that move as a sign that another round of U.S. retaliatory strikes could follow. Therefore, the report said the cycle of attacks and responses may continue in the near term.
Wider Conflict Lifts Oil and Dollar
According to the source, oil futures extended gains as traders priced in a higher risk of disruption across regional infrastructure and shipping. The article also cited reports that the Pentagon had been increasing the number of military aircraft in the region. In addition, an unnamed U.S. official said Washington was planning for a wider war.
The source said at least three, and possibly four, U.S. service members had been killed since fighting resumed a week ago. It said one service member died in Iraq during a controlled detonation of unexploded ordnance from a downed Iranian drone. It also said unidentified remains were found at the Jordan base hit by Iran on Friday.
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Source: InvestingLive
