Trump threatens heavy Iran strikes as Tehran defies pressure

On Wednesday, President Donald Trump announced that the United States would conduct a forceful attack on Iran, emphasizing that Tehran had delayed negotiations for too long and would now face the consequences.

Iranian President Masoud Pezeshkian responded on X, stating that critical infrastructure is the lifeblood of the nation. He warned that threatening to strike transportation, electricity, and water systems reflects desperation rather than strength, and affirmed that Iran will remain resolute against any pressure, guided by expert knowledge, national unity, and solidarity.

Market’s reaction

• Gold fell by nearly 3.5% to $4,116, while the US Dollar Index (DXY) steadied near 99.97.
• WTI crude oil recovered from earlier declines, rising over 2.8% to settle above $91 per barrel.
• US equities declined, with the S&P 500 and Nasdaq dropping more than 1% and 1.6%, respectively.

Gold vs Oil vs S&P 500

US Dollar Price Today

The table below presents the percentage change of the US Dollar (USD) against major currencies today, with the dollar showing its strongest position against the Australian Dollar.

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Risk sentiment FAQs

In financial terminology, the terms “risk‑on” and “risk‑off” describe the level of risk investors are willing to accept over a given period. In a risk‑on environment, investors are optimistic and more inclined to purchase volatile assets. Conversely, a risk‑off setting reflects heightened caution, prompting investors to favor safer, more predictable instruments even if yields are modest.

During risk‑on periods, equity markets tend to advance, and most commodities—excluding gold—also appreciate, driven by optimistic growth expectations. Commodity‑exporting nations see their currencies appreciate as demand for raw materials rises, while cryptocurrencies typically gain as well.

In a risk‑off market, bond prices—particularly those of major sovereign governments—rise, gold becomes more attractive, and safe‑haven currencies such as the Japanese yen, Swiss franc, and US dollar also strengthen.

The Australian dollar, Canadian dollar, New Zealand dollar, as well as minor currencies such as the Russian ruble and South African rand, typically appreciate during risk‑on periods. This reflects the strong correlation between these economies and commodity exports, which tend to surge as investors anticipate heightened demand for raw materials.

During risk‑off periods, the US dollar, Japanese yen, and Swiss franc generally appreciate. The US dollar benefits from its status as the global reserve currency, prompting investors to seek safety in US Treasury debt, which is perceived as low‑risk given the size of the US economy. The yen strengthens as demand for Japanese government bonds rises; a large share is held domestically, reducing the likelihood of rapid sell‑offs. The Swiss franc gains from Switzerland’s stringent banking regulations, which provide robust capital protection for investors.

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