Institution: Iran Conflict Supports US Dollar Short-term Movement, Faces Long-term Downside Risk

MarsBitNews · 2026-03-12T12:29:35+00:00

Mars Finance News: According to Golden Ten, analysts at Monex Europe stated in a report that unless there are credible signs of de-escalation in the Iran conflict, the US dollar may continue to receive support in the short term. This conflict has driven safe-haven flows toward the dollar, and the war has pushed oil prices higher, reinforcing market expectations that the Federal Reserve will maintain tighter policy for a longer period. However, from a long-term perspective, the market has underestimated the potential extent of US policy loosening once energy price concerns fade, which suggests the dollar faces downside risks.

MarsBitNews

2026-03-12 12:29:35

Mars Finance News, according to Jintiao, Monex Europe analysts stated in a report that unless credible signs of de-escalation in the Iran conflict emerge, the US dollar may continue to gain support in the short term. This conflict has driven safe-haven funds into the dollar, with the war causing oil prices to rise and reinforcing market expectations that the Federal Reserve will maintain tightening policies for a longer period. However, in the long term, the market has underestimated the potential for U.S. policy easing once energy price concerns subside, which means the dollar faces downside risks.

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