• The US Dollar strengthened as investors fled to safe-haven assets following US airstrikes on Iran’s nuclear sites.
• Oil prices surged nearly 6% in Asia before trimming gains — Brent hit $81.40 amid fears of supply disruptions.
• Global equity futures slipped, while the USD outperformed major peers, reflecting heightened risk aversion.
• Analysts warn: A potential blockade of the Strait of Hormuz, a key oil route, could escalate market volatility dramatically.
• Iran has promised “everlasting consequences” for the attack — markets now await Tehran’s next move.
• Despite rising tensions, equity markets remain relatively stable, with the S&P 500 just 3% off record highs.
• Safe-haven demand has fueled not only USD strength but also gains in commodities like gold.
• Morgan Stanley warns: If tensions persist, oil prices could climb sharply; a quick resolution could reverse the spike.
• Strategists highlight that institutional uncertainty in the US, Trump’s unilateral decisions, and growing fiscal concerns could challenge the USD’s traditional safe-haven role.

What’s Next?
• Markets are at a critical juncture. The Dollar’s safe-haven status is holding — for now. But true risk lies beneath the surface: If oil shocks persist and Middle East tensions spiral, the fragile balance could break quickly.