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Oil jumps as US-Iran escalation boosts dollar safe-haven demand
Oil futures opened up about 2% as US and Iranian actions raised expectations of a broader campaign, while air-raid reports across several regional countries pushed both oil and the US dollar higher.
Oil futures surged at the start of the week as markets repriced the risk of an extended US-Iran conflict. Forexlive tied the move to escalation headlines, not changes in near-term supply and demand, noting the repricing accelerated during the session.
Forexlive said the dollar rose alongside oil after air raid sirens sounded in Bahrain, Jordan, Kuwait, and Iraq following another wave of Iranian ballistic missiles and one-way attack drones. The outlet also cited the US response, including CENTCOM confirming strikes on Iran for a ninth consecutive night and the US Army launching at least two ATACMS tactical ballistic missiles from Kuwait toward Iranian targets.
As strikes expanded, Forexlive reported explosions across western and southwestern Iranian areas, including Tabriz and Khorramabad, plus activity near the Mahshahr and Imam Khomeini ports. The outlet also said Tabriz was hit for the first time since a ceasefire memorandum of understanding collapsed, with coverage suggesting a direct hit on a missile base.
Forexlive added that shipping risk increased in parallel, with Iranian media reporting an oil tanker in the Strait of Hormuz off the UAE coast was struck with anti-ship cruise missiles, and UK Maritime Trade Operations confirming the vessel was on fire. The outlet described this as building on earlier claims involving tankers in the strait.