USD/CAD supported as oil jumps on Iran escalation; yields hit multi-year highs

Risk sentiment deteriorated sharply as equity futures tumbled, global sovereign yields pushed to multi-year highs and crude oil rallied on escalating tensions involving Iran. The combination is classically dollar-supportive: rising long-end yields widen US rate differentials while a broad risk-off tone drives safe-haven demand into USD and CHF. USD/JPY faces two-way risk, with higher US yields offsetting traditional yen haven flows. Commodity currencies are mixed — CAD draws support from the oil spike, capping USD/CAD upside, while AUD and NZD underperform as global growth concerns and equity weakness weigh. Gold and oil remain the cleanest expressions of the geopolitical premium. Elevated bond yields also raise fiscal sustainability concerns in Europe and Japan, adding pressure on EUR and JPY. Technically, DXY strength targets resistance zones while EUR/USD support near 1.1600 is vulnerable on a sustained risk-off extension; USD/CAD pivots near 1.3700. Traders should size positions cautiously given headline-driven gaps and expect volatility to remain elevated while the Iran situation is unresolved.