← Latest news 
Dollar holds steady as Middle East peace hopes fade and oil climbs again
Economy
Published on 12 May 2026
Oil is rising, traders fear inflation can stay sticky
The U.S. dollar steadied as fears of renewed Middle East conflict pushed investors toward safety while oil prices climbed. Traders are watching for inflation pressures that could delay potential interest rate cuts. With diplomacy showing limited progress, markets are waiting on key U.S. inflation data and developments around President Trump’s China visit.
- Middle East risk keeps demand for the U.S. dollar steady
- Oil price gains are adding pressure to inflation expectations
- Rate cut hopes may be pushed back if inflation stays high
- Investors are bracing for U.S. inflation data and China visit headlines
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times