Washington: Concerns over a deepening conflict in the Middle East and its broader economic implications pushed the dollar higher, with market participants closely watching the potential fallout from ongoing hostilities. The conflict took a sharper turn following Israel’s surprise attack on Friday, which led to the cancellation of anticipated nuclear talks between Iran and the United States that were scheduled for Sunday.

Adding to the unease is the looming threat that Iran could close the Strait of Hormuz — a strategic waterway through which a significant portion of the world’s oil supply is shipped. Such a move would pose a serious risk to global energy markets and economic stability.

In early Monday trading, the dollar rose 0.14 percent to 144.3 Japanese yen, while the euro slipped by the same margin to $1.1534. The dollar index, which tracks the greenback against a basket of six major currencies, held steady at 98.25.

Meanwhile, the US dollar remained stable against the Swiss franc at 0.81, reflecting continued investor confidence in traditional safe-haven currencies. Risk-sensitive currencies such as the Australian and New Zealand dollars edged up slightly, though broader market sentiment remained cautious.