The euro and yen fell on Monday as concerns about higher oil prices dented the currencies of countries most exposed to energy shortages, while the dollar also benefited from a safe-haven bid on concerns about conflict in the Middle East widening.

 Brent crude jumped 10% to about $80 a barrel over the counter on Sunday, oil traders said, while analysts predicted that prices could climb as high as $100 after U.S. and Israeli strikes on Iran plunged the Middle East into a new war.

Bitcoin (BitfinexUSD) is clawing back its weekend losses, trading north of $67,000 as investors react to the seismic shift in Middle Eastern geopolitics. 

The recovery follows a period of extreme volatility triggered by the coordinated U.S. and Israeli strikes on Iran, which President Donald Trump confirmed resulted in the death of Supreme Leader Ayatollah Ali Khamenei. 

The U.S. dollar is likely to gain near-term support following the latest U.S. and Israeli military action against Iran, even as the broader currency reaction may remain uneven.

"The escalation in Iran over the weekend adds to recent dollar tailwinds via higher energy prices  - to the tune of 0.5-1% for every 10% increase in oil - and elevated risk aversion," Themistoklis Fiotakis, Head of FX Research at Barclays, said.