The dollar index is holding near 100 mark on Tuesday on safe haven demand amid heightened fears surrounding Trump’s ultimatum to Iran. Trump warned he would target Iranian power plants and bridges if his conditions are not met by Tuesday 8 p.m. Eastern Time, including the reopening of the Strait of Hormuz. Trump’s statement ruled out any possibility of a ceasefire and signaled escalation of tensions between the two countries. Further war-led destruction could lead to a more severe surge in energy prices that would revive inflationary pressures and force central banks to push up interest rates. Dollar is gaining appetite ahead of Tuesday deadline and is currently quoting at 99.63. Traders are now looking ahead to the latest Federal Open Market Committee (FOMC) Meeting Minutes for clearer guidance on the central bank’s policy trajectory.