Currencies

Dollar Moves in Lockstep With Oil After Iran War Surge

An oil pump jack at the Midway-Sunset Oil Field near Derby Acres, California.

Photographer: Ian Tuttle/Bloomberg

The dollar and oil are trading in lockstep in the wake of the US-Iran ceasefire this week, tightening the relationship between them to near-record levels.

A gauge that tracks the correlation between the benchmark price of US oil and Bloomberg’s dollar index over a 30-day period has spiked since early March, and is now approaching the peak last seen a year ago when President Donald Trump announced aggressive trade tariffs.