USD Surges on Safe-Haven Flows as Trump Warns Iran Over Houthi Attacks

The US dollar is rallying broadly as geopolitical tensions escalate following President Trump's warning to Iran, holding them responsible for Houthi attacks on Saudi Arabian ships. Crude oil is trading near $91 per barrel, fueling risk-off sentiment across global markets. The NASDAQ is down 364 points in premarket trading, reflecting the sharp deterioration in risk appetite. The intensifying Middle East conflict is driving safe-haven demand into the dollar, US Treasuries, and traditional havens like gold and the Swiss franc. Currency pairs such as EUR/USD and GBP/USD are facing downward pressure as traders reduce exposure to risk-sensitive assets. USD/JPY dynamics are mixed, with both currencies benefiting from haven flows. The geopolitical premium in oil prices is adding to inflationary concerns, potentially complicating central bank policy paths globally. Traders should exercise caution and monitor developments closely, as any escalation or de-escalation could trigger sharp reversals across forex and commodity markets. Elevated volatility is expected to persist in the near term.