USD gains momentum as Netanyahu expects US military action vs Iran

The US dollar extended gains with USD/JPY rising 0.6% to 157.35 and EUR/USD falling to 1.0405 as Netanyahu indicated US military involvement against Iran appears imminent within days. Flight-to-safety flows intensified following Trump's inflammatory social media posts, which markets interpreted as reducing diplomatic options and increasing conflict probability. The dollar index pushed through 107.00 resistance, marking a two-week high, while long-dated Treasury yields dropped 8 basis points as investors sought haven assets. Gold simultaneously surged 1.2% to $2,485/oz, reflecting broad risk-off sentiment. Technical indicators show USD/JPY approaching critical resistance at 157.50, above which could trigger acceleration toward 158.00. EUR/USD found support at the 1.0400 psychological level, but sustained geopolitical tensions suggest further downside potential toward 1.0350. Volatility indicators spiked with implied volatility reaching three-month highs across major pairs.