Dollar rises, European stocks and bonds fall after reports of U.S. warship being hit missiles

LONDON - The dollar strengthened while European shares and bond prices fell on Monday after Iran's Fars News agency reported that two missiles hit a U.S. warship when it tried to pass through the Strait of Hormuz.

The dollar index, which measures the currency against six peers, rose 0.3% to 98.542.

The pan-European STOXX 600 index was last down 0.9%, while the blue-chip Euro STOXX 50 was 1.7% lower.

Germany's 10-year bond yield, the benchmark for the euro zone bloc, was last up 5 basis points at 3.082%. Bond yields move inversely with prices.

(Reporting by Samuel Indyk; Editing by Dhara Ranasinghe)

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This story was originally published May 4, 2026 at 6:26 AM.