The oil pricing mechanism helps boost the strength of the US dollar and suppresses the rise of gold.

Juan Perez of Monex USA wrote that the recent surge in oil prices caused by the conflict in the Middle East is a key driver of the recent rise in the US dollar. He stated that since most oil trades are priced in dollars, the shipping difficulties in the Hormuz Strait will lead to higher oil prices, forcing the market to increase dollar borrowing, resulting in a stronger dollar and suppressing the rise of gold. Market concerns that this conflict may last longer than previously expected. Perez pointed out that even last week, emerging market currencies were performing well, but currently their exchange rates against the dollar are weakening.