Gold Surges, AUD/USD Drops as US-Iran Tensions Fuel Safe Haven Rush

Escalating US-Iran military conflict has triggered an aggressive safe-haven rotation across global markets, sending gold sharply higher while risk-sensitive currencies and equities sold off heavily. WTI crude spiked above $70 per barrel on fears of a potential Strait of Hormuz disruption, a chokepoint handling roughly 20% of global oil supply. AUD/USD came under significant pressure as risk appetite collapsed, with the Australian dollar weakening against a broadly firmer US dollar that benefited from its traditional safe-haven status. The Nikkei 225 fell sharply alongside broader Asian indices as investors de-risked portfolios. Gold's surge reflects classic flight-to-safety positioning, with the metal attracting strong inflows amid heightened geopolitical uncertainty. The USD firmed broadly, particularly against commodity-linked and high-beta currencies including AUD, NZD, and emerging market FX. Traders should monitor developments around Strait of Hormuz shipping lanes closely, as any physical disruption could amplify oil price volatility and further pressure risk assets. Near-term, AUD/USD faces downside risk toward key support levels if tensions continue escalating.