Observer: US Dollar Becomes Safe Haven Amid US-Iran Conflict
The conflict between the United States and Israel against Iran in the Middle East is causing the US dollar to strengthen significantly, driven by rising global crude oil prices. Currency and commodities analyst Ibrahim Assuaibi believes the US dollar has become a sought-after safe-haven asset among market participants.
“This morning the US dollar index experienced a significant gap up. We are seeing a spike in the dollar index driven by the rise in crude oil prices, which also increased sharply in this morning’s trading,” Ibrahim told reporters on Thursday, 12 March 2026.
Crude oil prices have moved towards $93.60 per barrel, whilst Brent oil is positioned at $98.52 per barrel. According to Ibrahim, oil prices could potentially breach $100 per barrel for both crude and Brent.
Meanwhile, the US Dollar Index (DXY) has exceeded the 99 level, standing at around 99.45, strengthening approximately 0.22 per cent in today’s trading.
Ibrahim explained that the rise in oil prices has been driven partly by attacks on two foreign oil tankers carrying oil from Iraq. The vessels were attacked by Iranian ships in Iraqi territorial waters, resulting in severe fires.
This incident triggered an escalation of geopolitical tensions in the Middle East region.
Additionally, on Wednesday, 11 March 2026, US President Donald Trump stated that Washington was in excellent condition in its war against Iran and continued to monitor the situation in the Strait of Hormuz. However, US intelligence assessed that Iran’s leadership remained solid, both within the government, the Revolutionary Guards, and amongst religious scholars.
“And we also see that Mojtaba’s leadership is currently more aggressive in warfare against Israeli territory. This is what is causing oil prices and the dollar to experience significant strengthening again,” Ibrahim stated.
The conflict between the US, Israel, and Iran is expected to continue. The US and Israel reportedly desire a ceasefire, but Iran has yet to show signs of halting attacks against Israeli territory or US military bases in the Middle East.