USD Strengthens as Trump's Iran Threats Spike Geopolitical Risk, Oil Surges

The US dollar is seeing mixed flows as President Trump's aggressive comments toward Iran raise geopolitical tensions in the Middle East. In a CNBC interview, Trump stated he would "blow them to kingdom come" if Iran pursued nuclear weapons, adding he does not care if negotiations collapse. The rhetoric has immediate implications for crude oil prices, which are spiking on fears of potential supply disruptions from the Persian Gulf region. USD/JPY faces downward pressure as traders rotate into traditional safe-haven assets including the Japanese yen, Swiss franc, and gold. USD/CAD is also in focus as rising oil prices typically support the commodity-linked Canadian dollar. Key levels to watch include USD/JPY support near recent session lows and USD/CAD resistance at prior weekly highs. Traders should monitor developments closely, as any escalation could trigger significant risk-off positioning across forex markets. Safe-haven currencies such as JPY and CHF stand to benefit if tensions intensify, while commodity-linked currencies like CAD and NOK may find support from elevated energy prices.