The U.S. dollar weakened against major currencies like the Swiss Franc on Wednesday as markets reacted to the possibility of the U.S.-Iran conflict ending soon This growing risk appetite, however, stands in stark contrast to severe warnings about a deepening global energy crisis stemming from the war
International Energy Agency (IEA) chief Fatih Birol delivered a grim assessment, stating the current oil supply crisis is “worse than the two in the 1970s and Russia-related in 2022 put together” The conflict has already removed more than 12 million barrels per day (bpd) of oil from the market and damaged 40 key energy assets Iran's effective shutdown of the Strait of Hormuz forced Saudi Arabia's crude exports to fall by half in March alone The IEA warns that the rate of oil supply loss in April is expected to be twice as high as in March
Despite the physical market turmoil, currency traders focused on speculation ahead of a planned national address by U.S. President Donald Trump The improved risk sentiment has put downward pressure on the safe-haven dollar, though some analysts believe the currency’s recovery looks fragile amid the geopolitical uncertainty Global leaders are monitoring the situation, with UK Prime Minister Keir Starmer noting the war will affect his country's economy and the European Central Bank stating it is ready to act once the economic consequences become clear Market attention is now fixed on President Trump's address for clarity on U.S. intentions
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