19:32 16 March 2026
War in Iran causing currency volatility, most in eight months
The geopolitical shock caused by the conflict in Iran and the near closure of the Strait of Hormuz has sharply increased uncertainty in global financial markets. In March 2026, currency volatility indicators reached their highest levels in eight months, forcing investors to reassess expectations for inflation and interest rates. The disruption of oil flows through the strait has pushed energy prices higher, creating strong cost pressures, particularly in Europe and Asia, which depend heavily on imported oil. Financial markets reacted nervously. The U.S. dollar strengthened, while the yen and euro weakened significantly.
Expectations for interest rate cuts by major central banks have also declined. The conflict has increased volatility across asset classes, including currencies, bonds, and stocks.
(pb.pl)
