Iran’s multi-country missile attacks heighten risks to regional energy infrastructure, driving crude prices higher and boosting safe-haven dollar demand.
Oil prices climbed nearly 2% Monday as Iran launched a new wave of missile and drone strikes targeting Bahrain, Jordan, Kuwait, and Iraq. The attacks raised concerns over potential disruptions to energy infrastructure and shipping routes in the Gulf, amplifying risk-off sentiment in markets.
The dollar also strengthened as investors sought safe-haven assets amid escalating tensions. Prior speculation of a widening conflict, fueled by an unnamed U.S. official, had already lifted crude prices before the latest strikes. Regional military responses, including Kuwait’s air defenses intercepting drones, underscored the growing instability.
The deployment of U.S. AWACS surveillance aircraft from Saudi Arabia’s Prince Sultan Air Base signaled preparations for further retaliation, reinforcing expectations of prolonged volatility in oil and currency markets.