Dollar Falls 0.03% as Middle East Tensions Push Oil Above $95, Trump Threatens Iran Power Plants

The dollar weakened slightly on July 22 as the U.S. Dollar Index (DXY) dropped 0.03% to 101.13, pausing after reaching a one-week high the previous day. The decline was limited by escalating Middle East tensions and rising oil prices.

Tensions between the U.S. and Iran intensified as President Trump posted on Truth Social that America would bomb and destroy Iranian bridges or power plants if Iran attacks shipping in the Strait of Hormuz with missiles, rockets, drones, or other weapons. Iran's Tasnim News Agency responded that the country would target U.S. interests in regional infrastructure and energy facilities if attacked. Brent crude surged past $95 per barrel for the first time since June 11, as the U.S. and Iran have exchanged attacks for 11 consecutive days, reducing vessel traffic through the Strait of Hormuz.