Geopolitical risks from US strikes on Iran drive risk-off sentiment, weakening the euro against the dollar and lifting oil prices.
The euro fell below 1.16 against the US dollar as risk sentiment deteriorated following fresh US military strikes on Iran. The move reflects broader market unease over escalating geopolitical tensions in the Middle East.
Higher oil prices and rising yields are adding pressure to risk assets, amplifying the dollar’s strength. The shift follows a period of relative stability in EUR/USD, which had traded near 1.1650 earlier in the week.
Markets are monitoring developments for further signs of geopolitical risk impacting currency and commodity markets.