USD Strengthens as UAE Reports Iranian Drone Attack on Oil Tanker

The US dollar is seeing increased safe-haven demand following reports that a UAE-owned ADNOC crude oil tanker was targeted by two Iranian drones in the Strait of Hormuz off the coast of Oman. No crew members were injured and the vessel was reportedly empty at the time of the attack. The incident escalates already heightened tensions in the region, coming on the heels of disputed reports about missiles being fired at a US warship in the same area. Crude oil prices are spiking on fears of supply disruption through the critical Hormuz chokepoint, through which roughly 20% of global oil supply transits daily. The escalation is driving flows into traditional safe-haven currencies including USD, JPY, and CHF, while commodity-linked currencies face mixed pressure — CAD and NOK may benefit from higher oil prices, but risk-off sentiment could cap gains. Traders should monitor further developments closely, as any disruption to shipping lanes could trigger significant volatility across forex and energy markets in the sessions ahead.