USD faces pressure as Trump hints at Iran intervention amid rial collapse

The US dollar showed mixed performance Monday as geopolitical tensions escalated following Trump's Truth Social post supporting Iranian protesters. The Iranian rial has collapsed catastrophically to 1.4 million per USD, representing a historic low amid widespread civil unrest triggered by sharp fuel price increases. Trump's cancellation of Iran meetings and promise of incoming "help" has raised speculation about potential military intervention, which could drive safe-haven flows into USD and JPY. Oil prices surged 2.3% on supply disruption fears, potentially impacting commodity currencies. The development marks one of the most significant challenges to Iran's government in decades. Traders are closely monitoring Middle East developments, with USD/JPY finding support at 155.20 while gold climbed toward $2,650. Any military escalation could trigger substantial risk-off sentiment, benefiting traditional safe-haven currencies.