FX.co ★ Dollar Finds Support on Mideast Uncertainty

The dollar index hovered near 99 on Wednesday, consolidating gains from the previous session as escalating uncertainty surrounding the Middle East conflict supported demand for the safe-haven currency. The Trump administration delivered mixed messages on the confrontation with Iran: President Donald Trump suggested the conflict could end soon amid growing market pressure, while senior officials signaled that military operations were intensifying and that meaningful diplomatic engagement remained unlikely. Iran’s Revolutionary Guards rejected Trump’s remarks, vowing that the blockade would remain in place until US and Israeli attacks cease. At the same time, oil prices extended their decline following reports that the International Energy Agency had proposed the largest release of oil reserves in its history in an effort to stabilize markets. Investors are now focused on a key US inflation report that may shed light on recent price dynamics, though it is not expected to fully reflect the impact of the Iran conflict.