The US dollar opened higher on Monday morning compared to last week's close as tensions escalated over the weekend.
On Sunday, the United States (US) officially joined the war with Israel by attacking 3 Iranian nuclear centers including Fordow, Natanz and Isfahan.
Ironically, after the bomb attack on the important Iranian facility, President Donald Trump called for peace.
The US did not continue with additional attacks, hoping that the action would force Tehran to sit at the negotiating table and end the war.
Iran ignored Trump's warning and continued a new round of attacks on Tel Aviv.
The market is now facing chaos with Iran threatening to close the Strait of Hormuz, a key trade route that will soar crude oil prices.
The Iranian parliament has unanimously voted to completely close the Strait of Hormuz, but the final decision must be finalized by Iran's Supreme Leader, Ayatollah Ali Khamenei.
Risk-off sentiment drove the market opening early this week with the effects of the war visible on financial instruments in different markets.
The US dollar opened higher on the back of its safe-haven advantage, but momentum has eased slightly.
Oil prices traded higher with US WTI crude at $78 a barrel while Brent crude has broken above $80 a barrel this morning.
Gold opened higher near $3,400 after a weak close last week. Although prices have eased back slightly, investors are ready for a surge higher if the war intensifies.
The cryptocurrency market was also gloomy with Bitcoin falling below $100,000 again amid the current market turmoil.
