TOKYO - The U.S. dollar strengthened Monday as escalating retaliatory threats in the Middle East fueled safe-haven demand. President Donald Trump threatened strikes on Iran’s energy infrastructure, prompting Tehran to vow counterattacks against regional neighbors.
The International Energy Agency warned the current crisis exceeds the combined impact of the 1970s oil shocks. Consequently, global equities tumbled, with Japan’s Nikkei shedding five percent, while Treasury yields climbed to an eight-month high.
Investors now price out Federal Reserve rate cuts as central banks turn hawkish. While major currencies like the yen and euro slipped, digital assets remained resilient. Bitcoin traded flat near $68,200 as risk aversion dominated trading sessions across Asia and Europe.