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ForexHigh ImpactUpdated×2•Originally published 2 March 2026•Updated 2 March 2026•

1 min read

US Dollar Extends Gains Against Euro as Oil Prices Surge and 'War Premium' Weighs

Two central bankers, Christine Lagarde and Thomas Jordan, with EU and Swiss flags, Euro and Swiss Franc symbols, and coins.

Key Facts

1EUR/USD dropped by more than 1% as investors rotated into the US Dollar as a safe-haven asset.

3 months ago

Version History

Version 23 months ago

What changed: The story was updated to include rising oil prices as a new driver for USD strength and the EUR/USD breaking technical levels due to the 'war premium'.

Version 13 months ago

What changed: The scope of the report was expanded to include the decline of the AUD/USD pair, adding firm US economic data as an additional driver for US Dollar strength alongside geopolitical factors.

The US Dollar extended its gains against major currencies, with a particular focus on the weakening EUR/USD pair. A sharp surge in oil prices has emerged as a new primary driver for Greenback strength against the Euro, adding to the downward pressure on the single currency. The EUR/USD pair broke through key lower technical levels, a move specifically attributed by analysts to the 'war premium' stemming from escalating geopolitical tensions. Meanwhile, the AUD/USD pair remained under pressure as investors reacted to intensifying Middle East rhetoric and robust US economic indicators. This combination of rising energy costs and geopolitical risks has intensified risk-off sentiment, weighing heavily on risk-sensitive currencies. The resilience of the US economy continues to provide a solid floor for the Dollar as markets monitor the evolving landscape.