USD gains as Iran missile strikes Israel spark safe-haven demand

The US dollar strengthened across major pairs following reports of Iranian ballistic missile launches targeting southern and northern Israel, with USD/JPY rising 0.4% to 151.20 and EUR/USD dropping 0.2% to 1.1480. The Israel Defense Forces confirmed missile interceptions after initial strikes violated an expected ceasefire scheduled for 0400 GMT. This escalation in Middle East tensions triggered immediate safe-haven flows into the dollar and yen, while risk-sensitive currencies like AUD and NZD declined 0.3-0.5% against the greenback. Oil prices surged 2.1% on supply disruption fears, adding to inflationary concerns that could influence central bank policies. Technical indicators show USD/JPY facing resistance at 151.50, while EUR/USD found support at the 1.1470 level. Traders should monitor further geopolitical developments as sustained tensions could accelerate dollar strength and increase market volatility throughout the week.