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France’s President Emmanuel Macron said on Sunday that freedom of navigation through the Strait of Hormuz must be restored as soon as possible. Macron called on Iran president to put an immediate end to unacceptable attacks against countries in the region including Lebanon and Iraq. 

The war in the Middle East intensified over the weekend, leading to opening gaps across the FX board.

The EUR/USD pair remains on the defensive around 1.1430 during the early Asian session on Monday. However, the potential upside for the major pair might be limited as escalating Middle East tensions could boost safe-haven flows. 

After US President Donald Trump called on allies to help secure the Strait of Hormuz on Saturday, the Wall Street Journal reported that the White House is planning to announce that multiple countries have agreed to form a coalition to escort ships through the corridor.

US energy secretary Chris Wright said that he expects the United States (US)–Israel war with Iran to end within “the next few weeks,” with oil supplies rebounding and energy costs declining afterwards, the Guardian reported on Sunday.

The AUD/USD pair holds positive ground near 0.6990 during the early Asian session on Monday. Traders will closely monitor the developments surrounding the United States (US)-Israel war with Iran. 

Update: The Israel Defense Forces (IDF), the country’s military, said in a post on X that it had launched a wave of “extensive strikes” across western Iran.

South Korea’s presidential office said in a statement on Sunday, “we will communicate closely with the US regarding this matter and make a decision after careful review.”

The Israel Defense Forces (IDF), the country’s military, said in its social media post on X on Sunday that Iran continued to launch missiles toward the territory of the State of Israel.

In an interview with NBC News on Saturday, US President Donald Trump commented on the military strikes on the Kharg Island and whether he was prepared to make a deal with Iran while pressing allies once again to help secure the Strait of Hormuz.