US-Iran military standoff drives oil to six-week high, supports dollar

SANAA, July 23 (YPA) – Crude oil prices surged more than 1.5% on Thursday to reach their highest level in over six weeks, driven by escalating military tensions between the United States and Iran.

Brent crude rose to $96 per barrel, while West Texas Intermediate (WTI) reached $88.27.

The heightened geopolitical risk in the Middle East rippled through global markets. The US Dollar Index held steady at 101.11, supported by safe-haven demand. Meanwhile, two-year US Treasury yields jumped to a 17-month high amid growing expectations that the Federal Reserve will keep its monetary policy tight to counter energy-driven inflation.

In foreign exchange markets, the Euro edged up slightly to $1.1412 ahead of an upcoming European Central Bank (ECB) policy meeting. The Australian and New Zealand dollars both dipped 0.1% to $0.6989 and $0.5811, respectively. Sterling remained largely unchanged at $1.3373, while the Japanese Yen posted modest gains, trading at 163.1 per dollar following reports that the Bank of Japan may accelerate its interest rate hikes.

YPA