USD Strengthens as Trump Signals Iran Deal Collapse, Oil Risks Rise

The US dollar is gaining safe-haven demand heading into the weekend as President Trump expressed dissatisfaction with Iran's latest diplomatic proposal, casting doubt on the prospect of a nuclear deal. Trump stated he is 'not satisfied' and 'not sure they'll get there,' while reports indicate the US is continuing a military buildup in the region with potential strikes among the options under consideration. The breakdown in negotiations elevates geopolitical risk premiums, supporting USD/JPY and USD/CHF as traders seek safety, while commodity-linked pairs such as USD/CAD and AUD/USD face pressure from potential oil supply disruptions. Crude oil prices are likely to see upward pressure on fears of Middle East escalation, which traditionally supports the Canadian dollar but weighs on oil-importing economies. Traders should monitor weekend developments closely, as any military action could trigger significant gap risk on Monday's open. Key pairs to watch include USD/JPY near resistance and EUR/USD for further dollar strength. Risk-off positioning is advisable given the elevated uncertainty surrounding the Iran situation.