Euro at Two-Week Low as Middle East Tensions Push Energy Prices Higher

The euro dropped to its weakest level in two weeks against the U.S. dollar on Tuesday, as renewed hostilities in the Middle East raised the cost of energy and weighed on the single currency. The dollar, by contrast, gained strength across the board, benefiting from its status as a safe-haven asset during times of geopolitical uncertainty. Higher energy prices are a particular concern for the eurozone, which relies heavily on imported oil and natural gas. Analysts say that sustained increases in these costs could slow economic growth and fuel inflation, making the euro more vulnerable. Traders are now watching for further developments in the region, as any escalation could push energy prices—and the dollar—even higher.