The dollar index climbed above 99.6, extending its recovery from a three-month low of 98.8 reached on August 21. The move tracked a rise in yields across maturities as inflation risks strengthened expectations for a more hawkish Federal Reserve. Renewed attacks between the US and Iran further reduced near-term prospects for improved energy flows through the Strait of Hormuz, while higher energy prices added to inflationary pressure. Several FOMC members, including Chairman Warsh, warned that inflation could justify higher interest rates. Chairman Warsh also said the labor market had recently been under full employment, in line with annual revisions showing nonfarm payrolls well below recent downgrades. Higher Eurozone inflation reinforced expectations for an ECB rate hike, limiting the DXY rebound.