USD Strengthens as Trump Signals Extended Iran Presence, Hormuz Oil Plans

The US dollar is drawing geopolitical support after former President Trump posted on Truth Social about extending US involvement in Iran, reopening the Strait of Hormuz, and seizing oil assets. The Strait of Hormuz is a critical chokepoint for roughly 20% of global oil supply, and any escalation or prolonged military presence in the region has significant implications for crude oil prices and risk sentiment. USD/JPY and USD/CHF are in focus as safe-haven flows could intensify, while commodity-linked pairs such as USD/CAD and AUD/USD may see heightened volatility tied to oil price fluctuations. Crude oil markets initially dipped on expectations of increased supply if the strait is fully reopened, though geopolitical risk premiums remain elevated. Traders should monitor developments closely, as any military escalation could trigger sharp moves in risk-sensitive currencies. Near-term, the dollar may benefit from its dual role as both a petrodollar currency and safe-haven asset, while EUR/USD could face downward pressure amid rising global uncertainty.