Oil and US Dollar Gain Support as Middle East Tensions Escalate

Good morning all, markets remain relatively quiet for now, with stocks trading sideways, while the US dollar and oil are both finding support from rising geopolitical tensions in the Middle East. The latest move higher came after reports that Iran suspended indirect talks with the United States earlier this week, following a fresh escalation in the region.

Over the past several days, both the U.S. and Iran have carried out multiple military strikes, which have increased uncertainty around the fragile ceasefire agreement. This renewed tension is also casting doubt on the chances for a broader peace deal, especially as both sides continue to disagree on major issues.

As a result, oil is on the rise, and ideally now in wave c of that three-wave recovery headed into the gap, so till this gap is filled dollar can stay up as well, possilby even reach a new high if stocks pulls back.