The dollar strengthened to a more than three-month high, supported by its safe-haven status amid the escalating conflict in Iran. The euro fell to its lowest level since November, trading below 1.1500 USD, while the yen reached its weakest point in 20 months, prompting Japanese authorities to prepare for potential currency intervention. Rising oil prices and geopolitical tensions are driving investors toward the dollar, bolstering its position. The war in Iran and related attacks on oil facilities in the region are adding further pressure on the energy market and currencies of importing countries. The dollar index is approaching a weekly gain of 1%, reflecting investor concerns about inflation and slowing economic growth.

Against this backdrop, EUR/USD may experience continued volatility, with possible scenarios including dollar strengthening amid ongoing geopolitical tensions or a correction if the conflict de-escalates.