USD Surges as Oil Tops $100 on Iran War Escalation, Futures Sink

US equity futures tumbled sharply while the US dollar surged as crude oil prices broke above $100 per barrel amid escalating military chaos involving Iran. The dramatic spike in energy prices has intensified inflation fears globally, with traders rapidly repricing Federal Reserve rate cut expectations. USD/JPY pushed higher as the dollar attracted strong safe-haven inflows, while EUR/USD came under significant selling pressure as European growth concerns mounted due to the energy shock. Commodity-linked currencies presented a split picture: USD/CAD declined as the Canadian dollar benefited from soaring oil revenues, while AUD/USD weakened on broader risk aversion. The DXY dollar index gained approximately 0.8% on the session, approaching resistance near 106.00. Key support for EUR/USD sits at 1.0750, with the pair vulnerable to further downside if oil continues its ascent. Traders face a highly volatile environment where geopolitical headlines can trigger rapid repricing across all major forex pairs.