Dollar jumps on renewed Middle East attacks, Hormuz closure

The US dollar strengthened after US and Iranian forces exchanged heavy missile and drone assaults over the weekend, with Tehran claiming closure of the Strait of Hormuz. Oil prices surged 3.3% with Brent crude at $78.49 a barrel, raising inflation concerns and boosting expectations of two Federal Reserve rate hikes by December to a 52.1% probability. The US dollar index hit its highest level since July 8 at 101.07, while major Asian and European currencies weakened against the dollar.