The US Dollar (USD) surged past the 98.50 level against major currencies following a geopolitical escalation triggered by US-Israeli military strikes on Iran, which resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei. The weekend attacks have heightened global tensions, prompting investors to flock to the USD as a safe-haven asset. Central banks and traders are closely monitoring the situation for potential spillover effects on oil markets and global trade routes. The sharp rise in the USD reflects increased demand for stability amid uncertainty. Geopolitical risks often drive capital into the US Dollar, which is seen as a reserve currency. Traders are now assessing the likelihood of retaliatory actions from Iran and its regional allies, which could further disrupt energy markets and push oil prices higher. This volatility may create opportunities for forex traders to capitalize on USD strength against emerging market currencies. For global markets, the situation underscores the fragility of the current geopolitical landscape. Investors should monitor statements from US and Iranian officials, as well as developments in oil production and supply chains. The Federal Reserve’s response to inflationary pressures from energy shocks could also influence USD momentum. Key assets to watch include the USD/JPY, EUR/USD, and Brent crude oil.