Geopolitical situation and sentiment fluctuate repeatedly, and the US dollar index continues to rise.

Huitong Finance APP News — According to reports from Huitong Finance APP, as investors’ concerns about a quick end to the Iran conflict continue to grow, market risk aversion sentiment has significantly increased, directly pushing up oil prices, and the US dollar has strengthened simultaneously. President Trump explicitly stated in a nationwide televised speech on Wednesday evening that the United States will “strike Iran very fiercely within the next two or three weeks.” This statement sharply contrasts with his previous claim the day before that US troops would withdraw from Iran within two or three weeks, completely dispelling market hopes that the conflict would soon end.

Trump’s recent remarks regarding Iran further intensify uncertainty. He emphasized that military action would proceed “very fiercely,” clearly indicating that without an agreement, key targets such as Iran’s power generation facilities would be heavily struck, contrasting sharply with the more moderate troop withdrawal expectations the day before. The market quickly interpreted this as a potential extension of the conflict beyond previous optimistic estimates, leading to an accelerated flow of safe-haven funds into US dollar assets, while crude oil futures were revised upward again due to the risk of disruptions in Middle Eastern supply. Structurally, the US dollar is supported by two strong factors: first, its traditional safe-haven status is significantly amplified in high geopolitical risk environments; second, as a net oil exporter, the US benefits from high oil prices, making the dollar more resilient relative to other major currencies in such an environment. Latest data show Brent crude oil prices have surged to $107.76 per barrel, up about 6.5% from the previous day, while WTI crude also broke through the $106 per barrel mark. This price increase directly reflects investors’ growing concerns over energy supply security and further enhances the dollar’s attractiveness. Against this backdrop, the US dollar remains strong, with the latest dollar index (DXY) rising to around 100.05, about 0.5% higher than before the speech. High oil prices are boosting global inflation expectations, further weakening market bets on rapid Fed easing, and rising real yields are indirectly favorable to dollar valuation.

To visually demonstrate the changes in key market indicators before and after Trump’s speech, here is a data comparison:

Overall, Trump’s shift in rhetoric not only prolongs the market’s expectation of conflict but also, through the resonance of energy prices and safe-haven logic, provides short-term sustained momentum for the dollar. Investors are closely watching subsequent military developments and energy market reactions. If signals of conflict continue to strengthen, the linked upward trend of oil prices and the dollar is likely to further solidify.

Editor’s Summary

Trump’s tough stance on military action against Iran is reshaping the current risk pricing framework of exchange rates and commodities through a dual mechanism of risk aversion sentiment and the advantages of oil net exporters. The combination of high oil prices and a strong dollar will continue to test global market stability until clear signs of conflict easing or substantial progress in energy supply restoration emerge.