The dollar's recent appreciation on the Israel-Iran conflict is likely mainly due to the oil-price rally as opposed to its safe-haven role, Commerzbank's Thu Lan Nguyen said in a note. "The dollar benefits from a rise in oil prices,

Selling pressure on 10-year US Treasuries from the latest round of Israel-Iran conflict is likely to have a lasting effect if past episodes of clashes between the two nations are any guide.

U.S. oil prices already jumped last week, which could cause prices at the pump to rise about 20 cents a gallon in the coming weeks, according to one estimate.