JULY 20, 2026

Summary

• Dollar largely steady as Mideast conflict keeps markets cautious
• Brent crude futures pare earlier gains
• Sterling nudges higher, domestic politics in focus

LONDON, July 20 (Reuters) — The U.S. dollar was broadly steady on Monday as investors remained cautious amid uncertainty surrounding the conflict involving Iran, while sterling edged higher as markets prepared for the arrival of Britain's new Prime Minister, Andy Burnham.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was little changed at 100.78.

Iran's Revolutionary Guards said they had struck U.S. military assets across the Middle East following another night of U.S. bombardment of Iranian cities. The conflict has disrupted energy supplies and heightened concerns about global inflation.

Nick Rees, Head of Macro Research at Monex Europe, said markets had become more comfortable with the current range of risks. He noted that unless unexpected developments occur, significant volatility is unlikely, although investors are expected to remain cautious.

Rees added that markets could return to the lower-volatility environment seen in May, reflecting a lack of strong conviction about the future direction of asset prices.

Brent crude futures were last trading slightly higher at $88.43 per barrel after rising above the $90 mark earlier in the trading session.