USD Strengthens as US Strikes on Iran Boost Safe-Haven Demand

The US dollar is seeing safe-haven demand following confirmation by US Central Command of strikes on Iranian missile and drone launch sites, escalating the ongoing conflict in the Middle East. The strikes, described as decisive action against imminent threats posed by the Iranian regime, have injected fresh geopolitical uncertainty into markets. Traditional safe-haven pairs such as USD/JPY and USD/CHF are in focus, with the dollar likely to benefit from risk-off flows. Oil prices are also reacting to the escalation, which could indirectly support commodity-linked currencies like CAD while pressuring risk-sensitive currencies such as AUD and NZD. However, markets may be inclined to look past the immediate escalation if no further major developments materialize, as suggested by the initial tone of market commentary. Traders should monitor headlines closely for any signs of retaliation or diplomatic de-escalation. Key levels on USD/JPY and gold remain critical barometers for geopolitical risk sentiment in the near term.