The rising tensions quickly affected financial markets. The dollar index gained about 0.5% to near 98 before giving back part of the move, as investors shifted toward safer assets. Weekend strikes by the US and Israel reportedly killed Iran’s Supreme Leader and led to the effective closure of the Strait of Hormuz, increasing concerns about wider instability.

The UK Maritime Trade Operations (UKMTO) raised the security risk level for the Strait of Hormuz to “critical,” confirming several attacks on commercial ships in the Gulf of Oman, near Musandam, and in UAE waters.

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