The US dollar strengthened as escalating tensions in the Middle East fueled investor risk aversion. This rise follows threats from Donald Trump regarding potential renewed conflict and Iran’s decision to close the Strait of Hormuz, a vital global oil transit route. Simultaneously, the British pound experienced a dip, linked to ongoing uncertainty surrounding the UK Labour Party’s leadership and future policy direction under Keir Starmer. These developments indicate a flight to safety with investors favouring the dollar as a safe-haven asset. The closure of the Strait of Hormuz raises concerns about potential disruptions to oil supplies and further instability in the region. Market analysts are closely monitoring the situation for further escalation and its potential impact on global markets. The pound’s weakness reflects domestic political anxieties impacting investor confidence.