Dollar rises as Middle East tensions escalate, affecting oil trade
The US dollar is on the rise, gaining 2% since late February, as investors look for safety amid growing unrest in the Middle East.
The big trigger? Ship traffic through the Strait of Hormuz has been disrupted by recent strikes and Iranian attacks in the area; several vessels have come under attack.
Oil prices surge, Iran warns of $200 per barrel oil
This slowdown is causing real headaches for global oil supplies, with a significant portion of that trade disrupted.
Oil prices have already surged over 4%, and Iran's military command said the world should be prepared for oil to hit $200 a barrel, which could mean higher costs for everything from travel to groceries and might even mess with interest rate cuts.
Shipping routes riskier, insurance costs spike
Tensions spiked after US and Israeli strikes in late February, followed by Iranian attacks in the area and both sides taking military action.
With shipping routes now riskier and concerns about higher insurance costs, markets are reacting fast—and everyone's watching to see what happens next.