Sanctions on Iran Send Dollar Soaring Amid Geopolitical Risks

US-Iran tensions have increased safe-haven demand for the dollar, causing volatility in major currency pairs.

The US is expanding its financial and economic sanctions on Iran, which may disrupt energy supplies and boost inflation expectations.

This has led to a rebound in the greenback, with USD/JPY trading at elevated levels. Japan's fiscal policy and potential intervention by Japanese authorities are also key risks for traders to monitor.

Meanwhile, hawkish ECB expectations have supported the euro, but dollar demand driven by safe-haven flows may pose a short-term challenge for EUR/USD.