The US Dollar Index struggled to extend a modest Asian-session rebound on Monday and was little changed near 100.75 to 100.80. Even so, the broader tone remains constructive for the dollar as investors continue to weigh heightened geopolitical risks against expectations that the Federal Reserve may stay hawkish for longer.
Market sentiment has been shaped by a sharp escalation in Middle East tensions. The United States carried out another round of strikes against Iran after reporting the death of an additional American service member in Iraq. Iran responded with ballistic missiles and one-way attack drones aimed at targets in Bahrain, Jordan, Kuwait and Iraq. The risk of a wider regional conflict has increased demand for defensive assets, supporting the dollar’s traditional safe-haven appeal.
At the same time, crude oil has surged to its highest level since June 12 as traders fret about possible supply disruptions tied to the Strait of Hormuz and restrictions on Iranian ports. Higher energy costs are reviving inflation concerns and could make central banks less willing to ease policy. In the US, futures pricing still implies at least one interest-rate increase in 2026, which adds to the dollar’s underlying support.
With no major US economic releases scheduled for Monday, currency moves are likely to be driven by speeches from Federal Open Market Committee members and any fresh geopolitical developments. The combination of risk aversion, firmer oil prices and a still-hawkish policy outlook suggests the dollar retains an upward bias in the near term. Any pullback in the index is likely to attract buying interest unless the political backdrop improves materially.Allbridge Core, a cross-chain stablecoin bridge, paused its protocol after a security incident on Sunday that reportedly led to about $1.65 million in losses. The breach affected the project’s Solana deployment, and the stolen assets were later moved from Solana to Ethereum before being routed through privacy pools.
The team said it suspended operations as a precaution while it investigates the incident and urged users with liquidity in affected pools to withdraw funds. The pause came after onchain analysts began tracing the attack and identifying the path taken by the stolen assets.
According to onchain reporting, the exploit began with a $1.12 million USDC flash loan borrowed from Kamino. The attacker then used rapid USDC and USDT swaps to distort the exchange rate inside Allbridge Core’s stablecoin pool. That manipulation appears to have created a temporary pricing imbalance that could be exploited for profit.
Using the distorted rates, the attacker withdrew liquidity and repaid the flash loan, keeping the difference as profit. The project later indicated that the imbalance briefly opened an arbitrage opportunity and suggested that anyone who benefited from it should return the funds to help compensate affected liquidity providers.
The incident marks at least the sixth attack against a cross-chain bridge since May, underscoring the continued risks surrounding these systems. Bridges remain attractive targets because they often hold large reserves that support wrapped or bridged assets on destination blockchains.
Recent incidents have included the Taiko bridge exploit in June, which led to the theft of $1.7 million before the bridge was later reopened, as well as a $4.67 million attack on Secret Network tied to an infinite-mint flaw. Other affected protocols in recent weeks have included Gravity Bridge, Verus Bridge and Butter Network.
