USD Gains on Safe-Haven Flows as Middle East War Extends to April

The US dollar maintained broad strength as uncertainty around a quick end to the Middle East conflict kept investors in risk-off mode. President Trump extended the operational deadline to April 6, dashing hopes for a rapid resolution and sustaining elevated geopolitical premiums across markets. Disruptions around the Strait of Hormuz, a critical chokepoint for roughly 20% of global oil supply, continued to drive crude prices higher, lifting rate hike bets as energy-driven inflation concerns mounted. The shift in rate expectations weighed heavily on overall market sentiment, with equities declining and bond yields rising. Major pairs saw the USD strengthen against risk-sensitive currencies including AUD and NZD, while EUR/USD drifted lower on divergent central bank expectations. Near-term, the April 6 deadline serves as a critical calendar event for traders. Any escalation or de-escalation around the Strait of Hormuz will directly impact oil-linked currencies such as CAD and NOK. Traders should maintain wider stop-losses given the elevated volatility environment and monitor headlines closely for rapid sentiment shifts.