Dollar Surges as Iranian Strike Wave and Hormuz Closure Rattle FX Markets
📉 MARKETS — Dollar spiking while the strait stays shut tells you who's absorbing the shock. 📌 LOOK CLOSER: Dollar strength in crisis is capital flight mechanics — but it compresses EM currencies holding dollar-denominated energy debt. With Hormuz at 11-15 vessels daily, import costs are already rising. A stronger dollar simultaneously raises the cost of any off-ramp: Iranian reserves erode faster, Gulf sovereign funds rebalance, and the London Brent benchmark climbs in tandem.
