Middle East Conflict Drives Up Oil Prices and Strengthens US Dollar

The Middle East conflict has driven up energy prices, notably Brent crude oil, boosting the US dollar by about 2.5% due to increased demand for dollars in oil transactions. The dollar's liquidity and status as a safe haven have attracted investors amid market uncertainty. The US, as a leading crude producer importing only a small portion from the Gulf, benefits from higher oil prices supporting its trade balance, despite this dynamic conflicting with former President Trump's economic goals.