Monex Europe analysts have indicated that the U.S. dollar is likely to remain supported in the short term unless there are credible signs of de-escalation in the Iran conflict. According to Jin10, the ongoing conflict is driving safe-haven flows towards the dollar. The war has led to rising oil prices, reinforcing market expectations that the Federal Reserve will maintain its tight monetary policy for a longer period than previously anticipated, thereby supporting the dollar. However, in the longer term, the market may be underestimating the potential extent of U.S. policy easing once concerns over energy prices begin to subside, which poses a downside risk to the dollar.