US Dollar Gains Ground Amid Geopolitical Uncertainty. Forecast as of 18.08.2026

While Brent was trading in the $80–90 per barrel range, the divergence in monetary policy worked in favor of Brent bulls. However, everything changed after Iran seized a tanker in the Strait of Hormuz. Let's examine the situation and develop a trading plan for the EUR/USD pair.Major Takeaways Rising geopolitical risks have boosted the US dollar. Monetary policy divergence is supporting the EUR/USD. The rally in Treasury yields is dampening risk appetite. Short positions on the EUR/USD can