The US dollar advanced to its strongest level in two weeks on Thursday, supported by a rebound in oil prices as market optimism regarding a de-escalation in the Middle East waned.
The Bloomberg Dollar Spot Index rose 0.2%, marking its largest single-day gain since late July.
The move reflects a broader risk-off sentiment that has been building across cross-asset markets.
Crude oil prices climbed in tandem with the currency, driven by renewed concerns over supply disruptions in the region.
The shift in geopolitical sentiment has eroded the previous market consensus that tensions were easing, prompting investors to rotate into safe-haven assets.
This repricing of geopolitical risk is a key driver behind the dollar's recent momentum, which had already seen the index approach five-week highs earlier in the week.