On Wednesday, October 2, the U.S. dollar and global oil prices surged as escalating tensions in the Middle East heightened market concerns over potential oil supply disruptions and broader economic instability.

The price spike followed intensified conflict in the region, raising fears that a prolonged crisis could severely impact key oil-producing nations and unsettle energy markets. Iran launched over 180 ballistic missiles at Israel, but by Wednesday morning, Tehran announced a halt to its missile strikes. Meanwhile, Israel and the U.S. vowed retaliatory action against Tehran, fueling concerns about a larger-scale conflict.

Oil prices jumped by more than 1.5%. Brent crude futures rose by 1.47% to reach $74.61 per barrel, reflecting growing worries about the Middle East situation. West Texas Intermediate (WTI) crude also saw a 1.62% increase, climbing to $70.96 per barrel, marking a strong upward trend in energy markets.

The U.S. dollar also gained amid the instability, as investors turned to the perceived safety of the American currency. The dollar index, which measures the dollar against a basket of major currencies, climbed to 101.25, marking its largest rise since September 25. Analysts pointed out that the combination of rising oil prices and the potential slowdown in global economic growth due to the conflict could further strengthen the dollar in the coming weeks.