Dollar Gains As Middle East Tensions Raise Oil Prices

The dollar is poised for its first weekly gain in three weeks as peace negotiations between the U.S. and Iran hit a standstill. This development has thwarted hopes for easing tensions in the Middle East, keeping oil prices elevated.

Lebanon and Israel extended their ceasefire agreement, yet Iran displayed its power over the Strait of Hormuz by releasing footage of its commandos overtaking a large cargo ship. The uncertain timing of reopening this key shipping corridor maintains upward pressure on oil prices.

Despite the ongoing tensions, the dollar index, a measure against currencies such as the yen and euro, remained steady at 98.82, setting the stage for a 0.58% weekly gain. Analysts suggest that the dollar will continuously track oil movements closely as crude prices rise.

(With inputs from agencies.)