Trump Delays Iran Strikes, AUD/USD Rebounds

U.S. President Donald Trump announced on Monday that he has instructed the military to postpone planned strikes on Iranian power plants for five days, pending the outcome of ongoing discussions, a move that eased immediate geopolitical tensions and spurred a recovery in the Australian dollar against the U.S. dollar.

The AUD/USD currency pair, which had dipped to intraday lows around 0.6967 earlier in the day amid escalating Middle East concerns, rebounded to trade nearly flat near 0.7000 by the European session. This stabilization reflects a broader improvement in investor risk appetite, as the delay reduced fears of immediate escalation and prompted a reversal in safe-haven flows toward the U.S. dollar. The pair had faced downward pressure throughout the previous week due to heightened rhetoric between the United States and Iran, including Trump's earlier Truth Social post threatening to "obliterate" Iranian infrastructure if Tehran did not reopen the Strait of Hormuz within 48 hours. In response, Iranian officials vowed retaliation, including an indefinite closure of the strait and attacks on U.S. and Israeli regional assets, keeping markets on edge.