MUFG Research sees a scope for USD outperformance in the near-term.

"The Trump response to the Iran response to US proposals to end the war as “totally unacceptable” leaves risks of a renewed energy price spike skewed to the upside. The US dollar is stronger today but only modestly and there remains time based on the very favourable global inventories available prior to the start of the war. But the Amsterdam-Rotterdam-Antwerp energy hub is seeing jet fuel inventories falling sharply to a six-year low," MUFG notes.

"Most estimates suggest some time during June would be the critical point for refined fuel shortages in Europe so there remains a period of time before disruptions become evident. Still, with risks of disruption rising, the appetite for selling the dollar at these weaker levels is likely to diminish," MUFG adds.