USD Strengthens as Iran Conflict Lifts Oil; KRW Pressured by Kosdaq Surge

Geopolitical tensions in the Strait of Hormuz are driving significant moves across Asia-Pacific financial markets, with no resolution in sight for the Iran conflict. Citi has raised its Q3 Brent crude forecast to $80 per barrel as the ongoing war disrupts key oil supply routes, bolstering the US dollar as a safe-haven asset while weighing on oil-importing currencies such as JPY and KRW. The USD/KRW pair faces additional complexity as the Kosdaq triggered a circuit breaker following a sharp surge in Korean tech stocks, reflecting volatile capital flows in the region. Rising oil prices historically pressure AUD/USD and USD/JPY, with the yen vulnerable due to Japan's heavy reliance on energy imports. Meanwhile, commodity-linked currencies like CAD may find support from elevated crude levels. Traders should monitor Hormuz developments closely, as any escalation could push Brent above $85 and amplify risk-off positioning. Near-term, USD strength is expected to persist against Asia-Pacific currencies, with key support for USD/JPY around 148.50 and resistance near 151.00.