USD Surges, Oil Hits $113.77 as Trump Threatens Iran Military Action

Crude oil spiked to $113.77 per barrel following aggressive rhetoric from President Trump during a press conference, where he suggested Iran could be 'taken out in one night,' dramatically escalating geopolitical tensions. The USD strengthened broadly as safe-haven flows intensified, with USD/JPY pushing higher while EUR/USD came under pressure. The comments, made while Trump recounted a past military rescue operation in Iran, injected fresh volatility into already tense markets that had been digesting earlier ceasefire optimism. The sharp oil rally directly impacts commodity-linked currencies, with USD/CAD seeing notable movement as Canada's oil-export economy reacts to energy price surges. USD/CHF faced competing pressures between dollar strength and Swiss franc safe-haven demand. Traders should monitor escalation risks closely, as any further military posturing could drive oil toward $120 and amplify risk-off positioning. Key support for EUR/USD sits near recent lows, while gold and JPY remain primary beneficiaries of sustained geopolitical uncertainty.