Dollar Options Most Bullish Since 2022 as War Keeps Oil Elevated

fu6b8pqu7wsb1iza9jgbawe5_media_dl_1.png BloombergArticle content(Bloomberg) — The dollar is on course for a fresh 2026 high, options markets show, as the Iran war keeps energy prices elevated.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Bloomberg Dollar Spot Index was up as much as 0.3% in early London trading, heading for its strongest close in nearly two months. According to options metrics, traders are betting it can rise to its highest level since December.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentOne-month risk reversals, which measure the difference in demand between bullish and bearish dollar options versus its major peers, rose earlier to their highest level since late 2022 at 92 basis points. Article contentArticle contentThe repricing comes after Brent crude jumped back above $100 a barrel. Oman has cleared all ships from its key export terminal outside of the Strait of Hormuz and two tankers were attacked in Iraqi waters.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentOman Evacuates Oil Port, Ships Hit in Gulf as Crisis Worsens (3)Article contentHigher oil can quickly stoke inflation in the US and keep rate-cut expectations from shifting dovish too quickly. Article contentBrent will average $98 in March and April before sliding back toward $71 by the fourth quarter, according to Goldman Sachs Group Inc. economists Manuel Abecasis and David Mericle. That will lift inflation enough to push back the first Federal Reserve interest rate cut of the year from June to September, they predict.Article contentThe shift implies wider rate differentials for longer, a combination that typically keeps the dollar bid, especially against energy-importing peers facing a terms-of-trade squeeze, reinforcing the greenback’s so-called petrocurrency behavior as oil drives macro pricing.Article contentDollar Enjoys Petrocurrency Status as Oil Drives Markets (1)Article contentNOTE: Vassilis Karamanis is an FX and rates strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.Article contentTrending Should couple in their 50s who want to retire tap into RRSPs or apply for CPP? Family Finance 82 Canadians crack Forbes’ 2026 list of the world’s billionaires. Here's the top 10 High Net Worth What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? Retail & Marketing Posthaste: Canada is losing the productivity battle, even in the grocery aisles News Here's why bets are rising for interest rate hikes including for Canada Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Should couple in their 50s who want to retire tap into RRSPs or apply for CPP? Family Finance 82 Canadians crack Forbes’ 2026 list of the world’s billionaires. Here's the top 10 High Net Worth What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? Retail & Marketing Posthaste: Canada is losing the productivity battle, even in the grocery aisles News Here's why bets are rising for interest rate hikes including for Canada Economy