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2026.04.0602:04:04UTC+00Dollar Extends Gains Amid Mideast Tensions

The dollar index climbed above 100.2 on Monday, extending its advance as investors reacted to a sharp escalation in the Iran crisis. President Donald Trump set a new deadline and ramped up threats to target Iran’s power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran rejected the ultimatum and continued its attacks on energy assets across the region, keeping the critical shipping lane effectively shut.

The dollar has strengthened markedly during the conflict, benefiting from its status as a safe-haven asset. At the same time, soaring energy prices are stoking inflation fears and reinforcing expectations that the Federal Reserve may postpone rate cuts or even raise borrowing costs later this year.

Separately, data released on Friday’s holiday showed the US economy added 178,000 jobs in March, almost triple the consensus forecast of 60,000. Investors now await the latest FOMC minutes for further guidance on the central bank’s policy trajectory.

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