The US dollar strengthened after President Donald Trump ordered a blockade of the Strait of Hormuz following a weekend impasse in US-Iran peace talks. The diplomatic deadlock pushed oil prices higher, triggering a risk-off sentiment in global markets.

The Strait of Hormuz is a critical chokepoint through which roughly 20% of the world's oil passes daily. Trump's blockade order came after negotiations between Washington and Tehran stalled, raising concerns about potential supply disruptions. Market participants reacted by seeking safe-haven assets, with the dollar benefiting from increased demand.

Oil futures surged on fears that the blockade could restrict shipments from major producers in the region. The move marks a significant escalation in US-Iran tensions, which have already roiled energy markets this year. Traders are now closely watching for any signs of military confrontation or further diplomatic breakdown that could amplify price volatility.