The dollar is on track for its best trading day in two weeks, buoyed by a recent uptick in oil prices. This movement comes as optimism surrounding the de-escalation of Middle East tensions appears to be waning.

Crude oil futures saw a notable increase, contributing to the dollar's strength. The market is closely watching developments in the Middle East, as any renewed instability could further impact energy prices and currency markets.

The advance in oil prices suggests a potential shift in market sentiment, with investors perhaps pricing in a higher probability of continued geopolitical risks. This environment typically favors the dollar as a safe-haven asset.