The Australian dollar depreciated past 0.7 per dollar on Monday, extending losses from the previous week as escalating tensions in the Middle East continued to spur caution on global risk sentiment. With the conflict showing no signs of easing, investors have reduced exposure to risk-sensitive currencies such as the Australian dollar. Heightened geopolitical tensions have also raised concerns over a potential surge in oil prices, which could stoke global inflation. In Australia, Energy Minister Chris Bowen said the country holds fuel reserves of 36 days of petrol, 34 days of diesel, and 32 days of jet fuel, well below the 90-day level recommended by the International Energy Agency. The Aussie dollar faced additional pressure from a strengthening greenback, as investors priced in a likely pause in Federal Reserve rate cuts. The US dollar gained further amid safe-haven buying as geopolitical tensions intensified, with President Donald Trump demanding Tehran’s unconditional surrender.