The dollar index climbed above 100 on Thursday, nearing a ten-week high as investors grew increasingly concerned that a further escalation in the conflict between the US and Iran could push energy prices higher and add to inflationary pressures. President Donald Trump warned that the US would strike Iran “very hard” and indicated that Washington could take control of Kharg Island in the near future. Meanwhile, fresh data showed that inflation accelerated in May at its fastest pace in more than three years, with the impact of the Iran conflict contributing to rising price pressures. According to the Bureau of Labor Statistics, the producer price index increased 6.5% year-on-year and rose 1.1% from the previous month. In Europe, the European Central Bank raised interest rates for the first time in nearly three years, signaling that it can no longer delay action as inflation risks increase amid the ongoing geopolitical uncertainty. The euro remained largely stable against the dollar.