Imports into Gaza, which include oil and crucial consumer goods, have been cut off by the government of Israel since the weekend’s surprise attack by Hamas, the militant organisation fighting for the liberation of Palestine.
Water supply into Gaza has also been cut off by Benjamin Netanyahu's government, raising the threat of a fast-developing humanitarian disaster.
Since Saturday’s surprise attack, the US dollar has gained strength as traders seek safe havens against hostilities.
The dollar advanced at least 0.2% versus the euro and pound, while risk currencies such as the Aussie and New Zealand dollar weakened.
Rising geopolitical risk could also see buying in assets like gold and the dollar and potentially boost demand for US Treasuries, which have been sold off aggressively.
Israel's central bank has stepped in to support its currency after the shekel fell to a near eight-year low against the US dollar in early trading.
The Bank of Israel said it would sell up to $30 billion of foreign currency in the open market to maintain stability, helping the shekel to recover slightly.
