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US-Iran war: Why US Dollar is rising despite soaring crude oil prices? SBI report explains

US-Iran war: The US Dollar index gained 1.3% for the week, marking its strongest weekly rise since mid-November 2024 as rising tensions in the Middle East boosted demand for safe-haven assets.

Mar 07, 2026 &03290707202631; 09:29 UTC www.livemint.com Trending 4/5

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Positive for markets

Sentiment score: +65/100

High impact Immediate effect (hours)

WHAT THIS MEANS

US Dollar strengthened 1.3% weekly amid US-Iran tensions, driven by safe-haven demand despite crude oil price increases. Middle East geopolitical risk is supporting USD while traditional oil-driven inflation concerns are being offset by flight-to-safety capital flows.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

Euro / US Dollar

EURUSDCurrency

Expected to decline

USD strength against EUR as safe-haven demand increases amid geopolitical tensions

↓

British Pound / US Dollar

GBPUSDCurrency

Expected to decline

USD appreciation driven by risk-off sentiment and Middle East escalation concerns

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Oil (WTI Crude)

CL=FCommodity

Expected to rise

Crude oil prices rising due to supply disruption fears from US-Iran tensions

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S&P 500

^GSPCIndex

High volatility expected

US equities facing headwinds from rising oil costs and geopolitical uncertainty offsetting USD strength benefits

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Gold Futures

GC=FCommodity

Expected to rise

Gold benefiting from safe-haven demand alongside USD strength during geopolitical crisis

PRICE HISTORY

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⚡ SUGGESTED ACTION

Long USD pairs (EURUSD short, GBPUSD short) and safe-haven assets (gold, treasuries) while monitoring crude oil volatility. Consider defensive equity positioning until geopolitical tensions de-escalate; energy sector may provide hedging benefits despite broader market headwinds.

KEY SIGNALS

USD Index +1.3% weekly - strongest since mid-November 2024Safe-haven asset demand surge amid US-Iran tensionsCrude oil prices rising despite USD strengthGeopolitical risk premium embedded in marketsFlight-to-safety capital flows dominating market dynamics

SECTORS INVOLVED

EnergyFinancialsDefensive Sectors

Analysis generated on Mar 09, 2026 at 18:07 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Livemint. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

US-Iran war: Why US Dollar is rising despite soaring crude oil prices? SBI report explains

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