USD/CAD & Safe Havens React as Oil Surges 5% on Iran-Hormuz Crisis

Crude oil prices surged approximately 5% after Iranian state television announced its Navy had successfully blocked U.S. naval movements in the Strait of Hormuz, with accompanying reports of a missile strike escalating Middle Eastern geopolitical tensions to a critical level. The development sent immediate shockwaves through forex markets, with safe-haven currencies JPY and CHF strengthening sharply against the U.S. dollar, while commodity-linked currencies like CAD and NOK gained on the oil price spike. USD/CAD came under selling pressure as higher crude prices bolstered the Canadian dollar, given Canada's status as a major oil exporter. The Strait of Hormuz is a critical chokepoint through which roughly 20% of global oil supply transits daily. Traders should monitor USD/JPY for continued downside pressure toward key support levels if risk-off sentiment intensifies. Meanwhile, EUR/USD could see upward movement as dollar demand weakens amid uncertainty. The situation remains highly fluid, and any further military escalation or diplomatic resolution could trigger sharp reversals. Risk management is paramount as volatility is expected to remain elevated across all major pairs in the near term.