The opening of a new front in the conflict between Israel and Iran has brought geopolitical risk straight back into the foreign exchange calculus. After the Israeli strikes Friday morning, the dollar witnessed an element of the “flight-to-safety” characteristic traditionally associated with military escalation but as ING points out in its daily research note,

Follow the latest news after Israel launched strikes at Iran, a dramatic escalation in long-running tensions between the two countries.

The Israeli military launched a massive attack on Iran on Friday in a dramatic escalation of their long-running conflict that drew early retaliation from Tehran and raised the risk of another war in the Middle East.

President Donald Trump warned Thursday of the possibility of “massive conflict” in the Middle East that could take place “soon.”

Global stocks are falling and oil prices are spiking Friday as Israel's attacks on Iran's nuclear program and military leadership sparked worries of a broader Middle East conflict and drove investors into safe-haven assets.

Pakistan’s central bank is expected to hold its policy rate on Monday, a Reuters poll showed, as many analysts shifted their previous view of a cut in the wake of Israel's military strike on Iran, citing inflation risks from rising global commodity prices.