US President Donald Trump on May 10 rejected Iran’s latest peace response as “totally unacceptable,” sending the dollar higher in Asian trading following strong US jobs data, while the continued closure of the Strait of Hormuz raised fears of another surge in global oil prices that could also affect the Philippine peso.

Hopes for a resolution to the 10-week conflict faded as investors flocked to the US dollar, widely regarded as the ultimate safe-haven currency during periods of geopolitical uncertainty.

As of Monday, 11 May, the euro was down 0.2 percent at $1.1767, while the Japanese yen weakened 0.1 percent to 156.905 per dollar. The British pound slipped 0.3 percent to $1.3597, while the Australian dollar fell 0.2 percent to $0.7234. The New Zealand dollar also weakened 0.3 percent to $0.5948 amid concerns that prolonged conflict could trigger broader global financial instability.

“We start the new trading week, as has so often been the case of late, reacting to geopolitical headlines,” Chris Weston, head of research at Pepperstone Group Ltd. in Melbourne, said.

According to a report, “The peso could return to the P61 level versus the dollar this week amid continued volatility in the Middle East,” largely due to escalating tensions between the United States and Iran.

Brent crude oil prices rose 4.3 percent in Asian trading to $105.47 per barrel, while US crude gained 4.7 percent to $99.92 per barrel. Analysts attributed the spike mainly to the continued closure of the Strait of Hormuz, a key global oil shipping route.

Shell Pilipinas announced a new round of fuel price adjustments effective 6 a.m. Tuesday, with diesel prices reduced by P9.57 per liter and kerosene lowered by P13.30 per liter, while gasoline prices increased by P0.47 per liter.

The US-Iran conflict appeared to intensify further after disagreements over peace proposals from both sides, with Trump maintaining a hardline stance on Iran’s nuclear program and rejecting concessions that would allow Tehran to retain enriched uranium stockpiles.

“It’s not over, because there’s still nuclear material — enriched uranium — that has to be taken out of Iran. There’s still enrichment sites that have to be dismantled,” Trump told CBS.

Iran, meanwhile, reportedly demanded compensation and recognition of its sovereignty over the Strait of Hormuz in a counterproposal that Trump described as “totally unacceptable,” while accusing Tehran of “playing games.”

Iran’s military also warned that countries opposing Tehran could face “problems” when passing through the strait.

The prolonged US-Iran conflict continues to unsettle global markets, with both sides still exchanging attacks and peace negotiations once again appearing to break down.