Escalation at Strait of Hormuz Is Pressuring the U.S. Dollar Forget oil for a moment. The real fault line is the U.S. dollar. Every global conflict of this scale tests the credibility of the reserve currency. This one is no different—but the timing couldn’t be worse. The U.S. is already carrying historic debt, elevated interest rates, and a fragile bond market. Now add a prolonged military standoff in the Strait of Hormuz—the artery through which roughly 20% of global oil flows. Here’s the problem: If global markets begin to question America’s ability to stabilize the region—or worse, see the conflict as self-escalated—capital doesn’t flow in. It flows out. We’re already seeing warning signals: Treasury yields breaching critical thresholds (30-year above…
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