The dollar rose to a 10-day high on Thursday, with the Bloomberg Dollar Spot Index gaining as much as 0.3%, as escalating hostilities in the Middle East dampened optimism for a resolution to the conflict. This surge in the dollar's value reflects investor demand for safe-haven assets amidst geopolitical uncertainty.
All currencies within the Group of 10 declined against the greenback, with the New Zealand dollar experiencing the most significant losses. The heightened tensions also led to a spike in oil prices, with Brent crude briefly surpassing $107 a barrel, indicating concerns about potential disruptions to global oil supplies.
US Treasury Secretary Scott Bessent announced that the US would unveil plans to economically isolate Iran and its trading partners on Monday, following President Donald Trump's threat of an "ECONOMIC D-DAY" against Tehran. This move comes as Trump has taken a hard line on Iran, refusing to extend a memorandum of understanding signed in June that was meant to provide a window for a peace deal. Iran has condemned the US plans for new sanctions. The USS George Washington aircraft carrier was photographed in the Arabian Sea on August 20, 2026, supporting US military operations in the region.
