USD: The US Dollar continues to gain support as markets gradually price in escalating Gulf tensions. Analysts see room for the DXY to move toward 101.50 if geopolitical risks intensify.

Oil: Brent crude has climbed back to $90/barrel. Markets are now focusing less on short-term spikes and more on the possibility of higher oil prices for longer, supporting the dollar.

EUR/USD: A retest of 1.1400 looks increasingly likely. A break below this level could expose the 1.1330 area as the next major support.

GBP: The pound experienced its first bout of volatility under new UK Prime Minister Andy Burnham after comments suggesting greater flexibility on fiscal rules weighed on UK government bonds.

Gilts: UK 10-year gilt yields underperformed their European peers, highlighting growing investor concerns over fiscal policy.

Politics: Markets appear comfortable with John Healey’s appointment as Chancellor, but investors will closely monitor whether UK bond markets stabilize in the coming sessions.

What’s Next?: Geopolitical risks still appear underpriced by FX markets. As long as Middle East tensions remain elevated and oil prices stay firm, the US Dollar is likely to retain the upper hand, while both the euro and pound could remain vulnerable to further downside pressure.