Dollar Opens Lower Amid Middle East War Impact

Key Takeaways

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Oil prices have significantly increased due to conflict in the Middle East, with Brent crude hovering around $100 per barrel and WTI reaching $95.33.
The dollar has seen a slight drop on March 17, 2026, despite rising energy prices, as measured by the Dollar Index. This could be attributed to the U.S.s role as a major exporter of refined petroleum products and gas.
Brazil is releasing new inflation data this Tuesday morning with Marchs IGP-10, which may impact the countrys economy due to rising oil costs. The Federal Reserve could slow down rate cuts or even increase interest rates because of potential inflation in the United States.
The conflict in the Middle East is having a significant impact on global markets and economies, with European and Asian nations resisting U.S. President Donald Trumps request to send military ships to the Strait of Hormuz. The markets trajectory will likely remain sensitive to geopolitical developments and their influence on energy markets. Additionally, political decisions in Brazil are being closely monitored by investors.

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As investors monitor developments in the Middle East and their impact on oil, the dollar saw a slight drop on Tuesday, March 17, 2026. As of 9:10 am, the currency had decreased by 0.20 to R$5.2204, while Brent crude oil was up 2.62% at $102.84 and WTI advanced 3.10% to $95.33 amidst concerns about potential disruptions to global oil flow. Brazil’s Bovespa index was set to begin trading at 10 am.

Amidst the conflict involving the U.S., Israel, and Iran, European and Asian nations have resisted U.S. President Donald Trump’s request to send military ships to the Strait of Hormuz, a key oil route. Despite American pressure, governments including Germany, Italy, Spain, Japan, and Australia have refused to participate, maintaining that the conflict is not their own. The risk of disruption in the global flow of oil is intensifying, with threats to attack Iran’s Kharg Island—responsible for approximately 90% of Iran’s exports—and tension at the Strait of Hormuz driving up oil prices. Oil prices have climbed sharply in recent weeks, from about $60 a barrel at the start of the year to over $70 before the war began in late February, and then spiking to nearly $120 a barrel on March 9 after President Trump discussed sending ground troops and Iran threatened to close the Strait of Hormuz. Brazil is releasing new inflation data this Tuesday morning with March’s IGP-10.

According to an analysis by Lucie Lequier published on March 13, 2026, conflict in the Middle East, which began roughly around March 1, has boosted the dollar by about 2.5% over the past two weeks, as measured by the Dollar Index. Rising energy prices, with Brent North Sea crude jumping significantly since hostilities began and now hovering around $100 per barrel, are supporting the dollar, since the U.S. is a major exporter of refined petroleum products and gas. This analysis considers how these rising prices could affect the growth and inflation of economies around the world and in Nordic countries. The final outcome depends on the duration and intensity of the Middle East conflict. With inflation on the rise due to high oil costs, it might push up interest rates or temporarily increase borrowing costs in the U.S. The Federal Reserve could slow down rate cuts or even increase interest rates because of potential inflation. In the United States, economic highlights include ADP job numbers, pending home sales, and weekly oil stocks, as well as a 20-year Treasury note auction. Japan is set to publish its February trade balance in the evening.

Middle East Tensions Influence Global Markets Amid Presidential Vote Decisions in Brazil

Politically, investors are also assessing the Genialquaest survey released this Tuesday. According to G1, the survey indicates that 56% of Brazilians claim to have already decided on their presidential vote, while 43% say they may still switch candidates. (Note: The preceding text does not necessarily reflect the opinion of Portal Uai.) The market’s trajectory will likely remain sensitive to geopolitical developments and their influence on energy markets.

In Case You Missed It

In a week filled with intriguing developments, we’ve got a trio of insightful articles you won’t want to miss. First up, Carlos Mendoza takes on the world of finance in “Dollar Falls and Closes at R$5.22” Dollar Falls and Closes at R$5.22. Dive into his exploration of how a significant drop in oil prices is rippling through Brazil’s economy, affecting inflation, investor confidence, and stock market performance. Then, stick around for another Mendoza masterpiece as he sparks debate about the future of gaming graphics with “Will NVIDIA’s DLSS 5 Revolutionize Gaming Graphics or Destroy Video Game Art?” Will NVIDIA’s DLSS 5 Revolutionize Gaming Graphics or Destroy Video Game Art?. Here, he examines the revolutionary photorealism capabilities and controversial computational costs of DLSS 5, pondering its impact on our gaming landscapes from Resident Evil Requiem to upcoming titles like Starfield. Lastly, buckle up for a surprising twist in the world of game development as Bruno Pferd reveals all in “Krafton Forced to Rehire Fired CEO Following ChatGPT Advice” Krafton Forced to Rehire Fired CEO Following ChatGPT Advice. Discover how Krafton, the team behind Subnautica, found themselves in a legal battle after taking questionable advice from an AI, ultimately delaying the launch of their anticipated sequel.