USD Weakens as Oil Surges on Ceasefire Setbacks; Risk Sentiment Sours

US equity futures are sliding in early trading as oil prices surge following setbacks in ceasefire negotiations, creating a risk-off environment that is weighing on the US dollar against commodity-linked currencies while boosting safe-haven flows. The Nasdaq is at risk of ending its notable 13-day winning streak, reflecting a broader deterioration in risk appetite. Rising crude oil prices are providing support to commodity-correlated pairs such as USD/CAD, where the Canadian dollar benefits from higher energy prices, and USD/NOK. Meanwhile, the Japanese yen and Swiss franc are attracting safe-haven demand as geopolitical uncertainty escalates. WTI crude's sharp move higher is adding inflationary concerns back into the macro picture, potentially complicating central bank rate-cut timelines. For USD/JPY, downside pressure is building as traders seek safety, with the pair testing near-term support levels. Traders should monitor further developments in ceasefire talks and upcoming US economic data releases for directional cues. Elevated oil prices and geopolitical risk are likely to sustain volatility across major forex pairs in the near term.