The US dollar near its strongest levels this year as oil prices rise, threatening to trigger inflation and force central banks globally to adopt more hawkish policy stances. The euro fell 0.1% against the greenback to $1.1549, reaching its lowest level since November. The yen also dropped to its lowest point since July 2024. Economists warn that the surge in oil prices will increase energy costs and global growth. Despite claims by U.S. President Donald Trump that Washington is in "very good shape" in its war on Iran, sources say that Iran's leadership is still largely intact. The European Central Bank is expected to hike as soon as June, while the Reserve Bank of Australia may also raise both rates.