USD/CHF Steady as SNB Holds at 0%; Oil Surges on US-Iran Escalation

European markets experienced significant cross-asset volatility as the US-Iran conflict escalation drove sharp moves across commodities and currencies. Brent crude and European natural gas prices surged as geopolitical tensions intensified following Iran's retaliation after the South Pars gas field attack, with reports suggesting the US is exploring government insurance options to escort ships through the Strait of Hormuz. The Swiss National Bank held its key policy rate unchanged at 0% at its March meeting, keeping USD/CHF in focus as traders assess divergent monetary policy paths. Gold, traditionally a safe-haven asset, paradoxically plunged to new lows as hawkish repricing in interest rate expectations dominated, with the Fed reportedly considering a rate hike amid the geopolitical turmoil. Silver dropped over 5%, with technical charts suggesting further downside risk. The hawkish shift in rate expectations is strengthening the US dollar broadly, pressuring commodity-linked currencies such as AUD and CAD. Traders should monitor Strait of Hormuz developments closely, as any disruption to oil flows could trigger further volatility in energy-sensitive pairs like USD/CAD and USD/NOK, while the SNB's dovish hold may weigh on CHF crosses near-term.