The U.S. dollar has recorded its most significant two-day gain in nearly a year, driven by inflation concerns and increased demand for safe-haven assets amid escalating tensions in Iran. This development has led traders to lower their expectations for interest rate cuts, resulting in a 7 basis point rise in the 10-year U.S. Treasury yield to a three-week high. In parallel, energy prices have surged, with crude oil exceeding $85 per barrel for the first time since July 2024, and European natural gas prices soaring 40% to their highest level since 2023. Money markets are now pricing in a 37-basis-point rate cut by the Federal Reserve this year, reflecting reduced expectations for monetary easing before year-end.