Dollar index steady amid deepening Middle East conflict after biggest weekly gain since September 2024

LONDON, March 15 (Reuters) - Currency markets were calm in early Asia-Pacific trading on Monday even as U.S. President Donald Trump threatened more strikes on Iran's main oil export hub Kharg Island and as the Strait of Hormuz remained effectively shut to traffic.

The U.S. dollar index =USD, which measures the currency against six peers, was little changed 100.5. The euro EUR=EBS was flat against the dollar at $1.1415.

The dollar enjoyed its best week since September 2024 last week, strengthening 1.7%, as the war in the Middle East drove investors toward safe-haven assets and as energy prices remained elevated.

"As adverse conflict spillovers grow, the effective closure of the Strait of Hormuz remains critical for markets, amid dozens of ship attacks, and reports of Iran mining the strait," said Erik Meyersson, Chief EM Strategist at SEB.
"The third week of the conflict appears to provide little comfort for markets already growing increasingly worried over an escalatory conflict the U.S. could struggle to control."

Oil prices could extend gains at Monday's open as the war entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz effectively shut.

Brent LCOc1 crude futures have surged more than 40% so far this month to their highest levels since 2022, ending the week above the key threshold of $100 a barrel.

The Trump's administration has rebuffed efforts by Middle Eastern allies to start diplomatic negotiations aimed at ending thewar that started two weeks ago, according to three sources familiar with the efforts.