USD Strengthens as Trump Confirms Iranian Port Blockade Starting Today

The US dollar is poised for heightened volatility as President Trump confirmed via Truth Social that the United States will begin a full blockade of Iranian ports at 1400 GMT on April 13. The blockade involves intercepting all vessels entering or exiting Iranian ports, including those carrying Iranian goods. This aggressive escalation significantly raises geopolitical risk in the Middle East, with direct implications for crude oil supply chains and energy-linked currencies. Safe-haven flows are expected to boost USD, JPY, and CHF demand, while commodity-linked currencies such as AUD, CAD, and NZD face downward pressure from risk-off sentiment. Oil prices are likely to surge on supply disruption fears, which could temporarily support CAD given Canada's energy exports, but broader risk aversion may offset this. Key pairs to watch include USD/JPY, USD/CHF, and AUD/USD. Traders should anticipate widened spreads and elevated volatility across major pairs as markets digest the blockade's implementation and potential Iranian retaliation.