EL7.AI
ForexMediumUpdated×7•Originally published 23 March 2026•Updated 25 March 2026•
1 min read

Israeli Strikes on Tehran Reverse Risk Sentiment; AUD/JPY Plummets to 110.50

Key Facts

1Donald Trump announced a five-day pause on planned attacks on Iranian power infrastructure.
2The decision followed apparent progress in negotiations between the two sides.
3The move sparked a sharp reversal in crude and energy markets, impacting commodity-linked currencies.

The geopolitical landscape shifted abruptly following reports of Israeli strikes on Tehran, driving the AUD/JPY pair down to the 110.50 level. Market volatility is now being compounded by recent Australian inflation data, which has begun to exert significant influence on currency movements. Furthermore, the Reserve Bank of Australia (RBA) monetary policy outlook has emerged as a key contributing factor for traders navigating the current uncertainty. Oil price volatility has also been introduced as a primary price driver, adding another layer of complexity to the global financial outlook. While Trump's 15-point peace plan remains a point of discussion, Iran's formal denial of progress in negotiations continues to weigh on risk sentiment. With the US Dollar Index (DXY) testing critical support at 98, the Japanese Yen (JPY) maintains its status as the preferred safe-haven asset.