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US dollar enjoys petrocurrency role

Bangkok Post

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March 16, 2026

As war spirals in the Middle East, one driver is increasingly overshadowing others when it comes to the US dollar: the price of oil.

In just a week, a historic surge in energy prices brought on by the US-Israeli attack on Iran has upended inflation and growth outlooks. The dollar, nonetheless, has marched higher. Its rise has been catalysed by America's position as the world's top oil producer and by the dollar's role as the currency for global crude trade.

Bloomberg's dollar gauge is up more than 1% since the launch of US and Israeli strikes on Iran on Feb 28. The greenback has rallied against all peers except the Canadian and Australian dollars, two currencies also highly linked to global energy prices.

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