US Dollar Climbs to Multi-Month Highs as Iran Conflict and Oil Spike Rattle Markets

The U.S. dollar is flexing its muscles in early March as geopolitical tensions and rising energy prices have been sending investors scrambling for what some believe is the world’s most liquid safe haven.

Roughly 20% of global oil shipments pass through the Strait of Hormuz, and tanker traffic through the corridor dropped sharply during periods of heightened tension. Energy traders reacted swiftly, sending Brent crude into the $93 per barrel range, with daily price moves of as much as 6% to 15% at their peaks.

The dollar strengthened broadly against major currencies this week. The euro weakened toward the $1.16 range during the rally, while the Japanese yen traded near 157 per dollar, and the British pound also slipped against the greenback.

Trump’s comments, statements from other U.S. leaders, Iranian authorities, and international players have kept geopolitical risk elevated, adding another layer of uncertainty to financial markets already adjusting to rising energy prices and shifting central bank expectations.

Analysts now point to the psychological 100 level on the Dollar Index as a potential next target if tensions in the Middle East remain elevated. And depending on Mojtaba Khamenei’s governing style, many observers believe he may closely reflect his father’s doctrine, meaning Iran will probably maintain its deterrence-first strategy.

For now, the dollar’s message to global markets is simple: when uncertainty rises and oil prices climb, the world’s reserve currency still tends to take center stage.