The dollar jumps amid escalating Israeli-Iranian crisis and threats to the Strait of Hormuz.

The US dollar rose against most major currencies in morning trading on Monday, driven by investors' rush to safe assets amid escalating tensions between Israel and Iran, and the possibility of conflict spreading in the Middle East. Concerns increased over Tehran's potential closure of the Strait of Hormuz, a vital global oil shipping route, prompting markets to be cautious and anxious about wide economic repercussions. This coincided with no signs of easing between the parties, as the nuclear talks scheduled for Sunday between Iran and the United States did not take place after Israel launched a surprise attack on Friday, as reported by Reuters. The dollar recorded a 0.14% increase to reach 144.3 Japanese yen, while the euro fell to $1.1534. The dollar remained stable against the Swiss franc at 0.81 in Asian trading, while the dollar index, measuring the US currency against six major currencies, stayed at 98.25. Risk-related currencies, such as the Australian and New Zealand dollars, saw slight increases, as investors await upcoming central bank meetings this week, expected to have a significant impact on global monetary policy trends. The Iranian rial continued to decline amid ongoing military and political escalation, reflecting the pressures on the Iranian economy amidst escalating tensions and market fears of events evolving into a broader confrontation in the region. In these circumstances, the importance of the dollar as a safe haven for investors increases, especially if geopolitical uncertainties persist, while the Strait of Hormuz remains a sensitive focal point that could ignite a new wave of oil and currency price fluctuations.