USD Weakens as Iran Conflict Risks and AI Fears Trigger Risk-Off, Oil Surges

US equity futures have slid sharply as escalating geopolitical tensions surrounding potential military conflict with Iran combine with growing fears of AI-driven economic disruption, triggering a broad risk-off move across financial markets. Crude oil prices have surged on supply disruption concerns tied to the Iran situation, providing a boost to commodity-linked currencies such as CAD and NOK while pressuring oil-importing economies. The spike in volatility has driven safe-haven demand, supporting the Japanese yen (USD/JPY lower) and Swiss franc (USD/CHF lower) as traders seek shelter from geopolitical uncertainty. Gold has also benefited from the flight to safety, with XAU/USD pushing higher. The US dollar is facing mixed dynamics — benefiting modestly from safe-haven flows but weighed down by declining risk appetite and falling US equity futures. Traders should closely watch developments in Middle East diplomacy and energy market reactions, as further escalation could amplify yen and franc strength while deepening pressure on risk-sensitive pairs like AUD/USD and NZD/USD.