Geopolitical risks in the Strait of Hormuz drive USD strength and a 6% surge in WTI crude, while gold and silver rally on safe-haven demand.
The US Dollar Index (DXY) rose 0.2% to above 99.80 on Monday as tensions in the Strait of Hormuz pushed West Texas Intermediate (WTI) crude up over 6% to near $81.70 per barrel. The standoff, fueled by US-Iran disputes over compensation and naval blockades, kept risk premiums elevated in energy markets and supported the greenback.
Gold and silver climbed alongside the USD, with gold adding 0.9% to trade near $4,380 and silver rising 3.5% to $65.70. The moves reflected safe-haven demand and concerns over energy-driven inflation ahead of upcoming US data. The dollar outperformed the Japanese Yen, marking its strongest gain among major currencies.
No immediate market reaction was specified, but the shift underscored how geopolitical risks are reshaping cross-asset flows amid persistent uncertainty over the Strait’s reopening.