USD Surges as Iran Strikes US Bases in Jordan and Bahrain, Oil Spikes

The US dollar is experiencing strong safe-haven demand following reports that Iran has struck US military facilities in Jordan and Bahrain. The attacks are believed to be retaliation for recent US Central Command operations against Iranian command centers, missile and drone launch sites, air defense systems, and maritime capabilities in southern Iran. There has been no immediate confirmation from US officials regarding damage or casualties at either facility. The escalation has sent crude oil prices sharply higher, pressuring commodity-importing currencies while boosting traditional safe havens including USD, CHF, and JPY. USD/JPY is seeing mixed flows as both currencies attract risk-off demand, while EUR/USD and GBP/USD face downside pressure amid the flight to safety. AUD/USD and NZD/USD are particularly vulnerable given their risk-sensitive profiles. Traders should monitor for further military developments, as any additional escalation could trigger wider volatility across forex markets. Gold is also rallying on the geopolitical uncertainty, reinforcing the broader risk-off environment.