Schiff Warns of Dollar Weakness, Says “The Glory Days Are Over” as Oil, Yields Climb

Economist Peter Schiff said on X that the U.S. dollar weakened as oil prices and bond yields moved higher. He noted the dollar index dropped below 98, wiping out earlier gains linked to geopolitical tensions. He tied the move to weaker safe-haven demand and rising inflation pressure in energy markets.

Schiff also said the dollar’s limited rally during recent uncertainty suggests weaker long-term support. He warned that higher oil prices and rising yields could keep pressuring the currency. He added that energy costs and interest rates are now feeding into inflation, which adds further strain on the dollar’s global position.

The U.S. Dollar Index is back below 98, giving up all of its Iran war gains. The dollar’s muted safe-haven rally in response to the war shows that its glory days are over. As dollar weakness intensifies, it will add to the existing upward pressure on oil prices and bond yields.

— Peter Schiff (@PeterSchiff) May 1, 2026

Oil and Yields Shape Market Direction

Oil prices remain elevated, at times above $110 per barrel, driven by supply risks and geopolitical tensions. Higher energy costs feed directly into inflation expectations across transport and production sectors. As a result, markets adjust pricing models when oil stays high for longer periods.

U.S. Treasury yields recently eased to 4.35% after hitting a nine-month high. Earlier gains reflected stronger inflation data and tight labor conditions. Schiff said rising yields often point to fiscal pressure and shifting investor sentiment toward government debt.

Broader economic data continues to show mixed signals. ISM prices reached multi-year highs, while jobless claims pointed to a strong labor market. Investors now weigh solid growth against persistent inflation when adjusting positions across assets.

Dollar Pressure and Market Reactions

Schiff said earlier that dollar weakness tends to push up inflation by raising import costs. A weaker dollar also makes commodities like oil more expensive globally. He expects continued pressure on purchasing power if these trends persist.

However, the movements of the dollar currently show liquidity changes globally but do not signify a definitive long-term decline. This is supported by a higher level of activity on behalf of foreign central banks and steady interest in purchasing government securities.

At the time of writing, Bitcoin has responded to overall conditions in the economy and reached a price of over $78,000 with the easing of geopolitical tensions. The cryptocurrency market was also mixed for Ethereum, XRP, and Solana.

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