Hopes for a sustained rebound in the dollar are fading as tensions in the Middle East and an oil spike reignite inflation risks.

The U.S. dollar surged as tensions rose with the closure of the Strait of Hormuz. Iran charging Hormuz fees by August 31 at 42% YES.

SINGAPORE: The dollar jumped against most of its peers as a renewal of conflict in the Middle East fanned inflation fears and the prospect of rate hikes from central banks…