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ForexMedium•31 March 2026•

1 min read

Donald Trump speaking in front of American flags at a political event

Trump Escalates Iran Conflict, Boosting US Dollar and Oil Prices

Key Facts

1Reports indicate Trump is willing to end the Iran war even without a fix for the closed Strait of Hormuz.

2Trump reinforced his stance via Truth Social, alongside remarks from the Iranian President about seeking an end to the conflict.

5 days ago

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Version History

10 additional sources confirmed this story

Version 75 days ago

What changed: The AUD/USD pair reached the 0.6900 level as Trump's remarks provided immediate support to the US Dollar.

Version 66 days ago

What changed: The story was updated to reflect Trump's shift from potential de-escalation to active escalation, noting the subsequent boost to the US Dollar and oil prices.

Version 56 days ago

What changed: Market sentiment pivoted from risk-on back to a risk-off mood, leading to a new bearish technical forecast for AUD/USD with targets below 0.6830.

Version 46 days ago

What changed: Added specific technical analysis for AUD/USD, noting the break above the 23.6% Fibonacci level and resistance at the 0.7000 handle and key 100/200 SMAs.

Version 36 days ago

Version 26 days ago

What changed: The focus has shifted from general de-escalation signals to an upcoming national address by President Trump, creating technical uncertainty for the AUD/USD pair.

Version 17 days ago

What changed: Added details regarding the AUD/JPY pair approaching the 110.00 level as a key technical milestone for risk sentiment following the de-escalation.

President Donald Trump has escalated the conflict with Iran, marking a sharp reversal from his previous signals of potential de-escalation. This geopolitical escalation has triggered a significant boost in both the US Dollar index and global oil prices, as the blockade of the Strait of Hormuz persists. Remarks from Trump today have directly contributed to lifting the US Dollar, intensifying the risk-off sentiment across global markets. Consequently, the growth-sensitive AUD/USD pair has slipped toward the 0.6900 level, accelerating its recent decline. Technical analysis suggests further downside for the pair, with targets potentially falling below 0.6830 as it remains capped by the 0.7000 level and key SMAs. Investors are now bracing for President Trump’s national address, which is expected to set a more hawkish tone for global markets. Meanwhile, the ongoing maritime blockade continues to threaten global supply chain stability, further suppressing any recovery in risk appetite.