USD Surges as Iran Attacks US Forces; Crude Oil Breaks Above $92

The US dollar is strengthening sharply as geopolitical risk escalates following reports of Iranian attacks on US forces stationed in Bahrain and near Baghdad International Airport. Crude oil has surged past the $92 level, reaching an intraday high of $92.61, as markets price in potential supply disruptions from the Middle East. The escalation is driving classic risk-off flows, with traders moving into safe-haven assets including the US dollar, Japanese yen, and Swiss franc. Commodity-linked currencies such as the Canadian dollar are also seeing support from rising energy prices, while risk-sensitive currencies like the euro and Australian dollar face downward pressure. Key resistance for WTI crude sits near the $93.00 psychological level, with further escalation likely to push prices toward $95.00. Forex traders should monitor developments closely, as any further military escalation could trigger significant volatility across major pairs. The DXY is testing recent highs, with USDJPY and USDCHF serving as key barometers of safe-haven demand in the current environment.