USD/CAD & USD/JPY React as Oil Surges on Trump Iran Ceasefire Collapse

US equity futures are sliding and crude oil prices are surging after former President Trump declared the Iran ceasefire over, injecting significant geopolitical risk into global markets. The spike in oil prices carries direct implications for commodity-linked currencies, with the Canadian dollar likely to benefit from higher energy prices, putting downward pressure on USD/CAD. Meanwhile, the Japanese yen is expected to attract safe-haven flows as risk sentiment deteriorates, pressuring USD/JPY lower. Rising oil prices also feed into inflation expectations, potentially complicating the Federal Reserve's rate path and weighing on broader dollar sentiment against safe-haven currencies while supporting it against risk-sensitive pairs. Traders should monitor crude oil's reaction at key resistance levels, as sustained prices above recent highs could amplify moves in commodity and safe-haven FX pairs. Near-term volatility is expected to remain elevated as markets assess the likelihood of military escalation in the Middle East. Risk management is critical in this environment, with potential for rapid sentiment shifts on any diplomatic developments.