The Dollar Maintains Its Gains as Trump's Deadline for Iran Approaches Amid Market Tensions

The US dollar stabilized today, Tuesday, at a level close to its recent highs, as markets await the deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz to shipping; otherwise, the country will face attacks on its infrastructure.

The conflict in the Middle East and the closure of the strategic waterway have led to rising energy prices, prompting investors to turn to the dollar as a safe haven, especially in Asian markets.

The Japanese yen fell to 159.80 against the dollar, a level close to its lowest in several decades, which prompted Japanese government intervention in 2024. In contrast, the US dollar index rose by 0.05% to reach 100.03, after hitting its highest level since May 2025 at 100.64 last week.

To Lan Nguyen stated that the Iranian leadership has shown a surprising ability to maintain full control over the Strait of Hormuz, allowing it to exploit this control for its long-term interests.

Iran and Israel have recently exchanged attacks, as Tehran refused to reopen the strait, while Israel carried out a wave of airstrikes targeting Iranian infrastructure. Air defenses intercepted Iranian missiles in Israel and Saudi Arabia, increasing the state of anticipation in financial markets.

The euro remained nearly stable at $1.1535, amid expectations that the European Central Bank will raise interest rates three times before the end of the year to control inflation.

The Australian and New Zealand dollars moved away from their recent lows after the latest Iranian attacks, but continued to decline, with the Australian dollar trading at $0.6912 and the New Zealand dollar at $0.57.

As tensions in the Gulf continue, the dollar maintains a strong performance, while other currencies fluctuate with the risks of military conflict and energy prices, keeping financial markets on alert for any sudden developments.