**BREAKING: EUR/USD Slumps Below 1.16 as US-Iran Tensions Trigger Risk-Off Move**
The euro has broken below the 1.16 level against the US dollar following fresh American military strikes on Iran, according to Danske Bank’s research team. Risk sentiment across global markets has sharply deteriorated as geopolitical tensions escalate in the Middle East. The sell-off is being amplified by surging oil prices and climbing bond yields, both consequences of the military action that are placing additional pressure on risk assets across the board.
Traders are fleeing to traditional safe havens as uncertainty clouds the geopolitical landscape, with the dollar benefiting from its status as the world’s primary reserve currency. The euro zone currency is bearing the brunt of the risk-off rotation as investors reassess exposure to European assets. Oil price spikes typically hurt the eurozone economy more severely than the US due to Europe’s greater energy import dependency.
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FXnCO Insight
** Traders should monitor crude oil benchmarks and US Treasury yields closely, as further escalation could push EUR/USD toward 1.15 support with stop-loss cascades accelerating the move.
Source: FXStreet