#IsraelIranConflict
1. The Impact of Wars on the Currency Market
Wars — such as the recent escalation between Iran and Israel or the Russian/Ukrainian conflicts — increase demand for safe-haven currencies like the dollar, euro, and Swiss franc.
In June 2025, Israeli strikes on Iran caused oil prices to rise by ~10%, prompting the dollar, gold, and Swiss franc to increase due to investors' fears of security repercussions.
Geopolitical crises often bolster hedging positions: investors tend to favor strong currencies, leading to sharp fluctuations in emerging currency markets.
