Summary：**Dollar climbs amid Gulf tensions, oil spikes as Fed rate hike looms****Introduction** The U.S. do

referrerpolicy="no-referrer"
style="max-width:100%;height:auto;display:block;margin:0 auto;">

**Dollar climbs amid Gulf tensions, oil spikes as Fed rate hike looms**

**Introduction**
The U.S. dollar held steady against a basket of major currencies on Thursday, gaining ground as investors sought refuge from rising geopolitical risk in the Gulf. Safe‑haven demand lifted the greenback, while a sharp rally in crude oil prices reinforced expectations that the Federal Reserve may tighten policy sooner than markets had priced in. Meanwhile, the Japanese yen languished near a four‑decade low, pressured by the dual forces of dollar strength and higher energy costs.

**Key Developments**
Escalating tensions between Iran and several Gulf states triggered a spike in Brent crude, which jumped over 3% to trade above $92 a barrel. The surge revived memories of past supply shocks and prompted traders to buy dollars as a hedge against potential disruptions to Middle‑East oil flows. In the currency markets, the dollar index rose 0.4% to 106.2, its highest level in two weeks. The euro slipped 0.3% against the dollar, and the British pound fell a similar amount. The yen, meanwhile, weakened to 151.8 per dollar, flirting with levels not seen since the early 1980s. Futures contracts showed a 70% probability of a 25‑basis‑point Fed hike at the September meeting, up from 55% just a day earlier.

**Industry Analysis**
Analysts note that the dollar’s