U.S. Dollar Strengthens Amid Middle East Tensions and Market Volatility

Amid escalating Middle East tensions following U.S. and Israeli strikes on Iran, the U.S. dollar strengthened sharply, reaching its highest levels in weeks as investors sought safe-haven assets. The dollar index rose nearly 1%, supported by the depth of U.S. financial markets and limited alternatives. Concurrently, oil prices surged and global stock markets declined. Analysts noted the dollar's return to its traditional crisis-era role, while bond yields fluctuated amid concerns over inflation and Federal Reserve policy adjustments.