The U.S. dollar surged across major currency pairs after a missile strike in Tehran triggered global risk-off sentiment, pushing USD/JPY to 151.78 and EUR/USD to 1.0723. Safe-haven demand lifted gold and crude oil prices, while U.S. equities declined.
- USD/JPY reached 151.78, its highest since late 2024
- EUR/USD fell to 1.0723 amid risk-off sentiment
- XAU/USD rose to $2,345 per ounce (+3.2%)
- WTI crude oil jumped to $89.60 per barrel (+5.4%)
- S&P 500 (SPX) declined 2.1% intraday
- Nasdaq Composite dropped 2.6% as tech shares sold off
A missile strike on a building in Tehran on March 1, 2026, sparked immediate market reactions, with the U.S. dollar climbing sharply as investors sought safe-haven assets. USD/JPY rose to 151.78, its highest level since late 2024, while EUR/USD fell to 1.0723, reflecting a broad-based flight to quality. The move underscores heightened geopolitical risk, with the crisis in the Middle East now posing a material threat to global economic stability. Commodities responded strongly to the escalation. XAU/USD climbed to $2,345 per ounce, a 3.2% increase in under two hours, driven by demand for gold as a store of value. Meanwhile, WTI crude oil surged to $89.60 per barrel, up 5.4% amid concerns over potential supply disruptions in the region. The rally in oil prices adds inflationary pressure, particularly for energy-importing economies. Equity markets reacted negatively, with the S&P 500 (SPX) dropping 2.1% in early trading, erasing gains from the prior week. Tech and materials sectors were hit hardest, with the Nasdaq Composite falling 2.6% and major mining stocks declining over 3%. Financials also weakened, as rising risk premiums pressured credit spreads and short-term interest rate expectations. The swift market response highlights the sensitivity of global financial systems to regional conflicts. With no immediate de-escalation efforts reported, traders are adjusting positions ahead of potential broader military escalation, leading to increased volatility across asset classes.