The US dollar rose sharply on Thursday after US President Donald Trumps speech on Iran dashed hopes for a quick end to the conflict, driving investors toward safe-haven assets as oil prices surged and equities declined.

In a widely anticipated address, Trump pledged to carry out stronger strikes against Iran over the next two to three weeks, without providing a clear timeline for reopening the Strait of Hormuz or ending the war, which has shaken investor confidence and triggered volatility in global markets.

Investors quickly moved out of riskier assets such as equities and into the US dollar, pushing the yen, euro, and British pound lower.

The dollar index, which measures the US currency against a basket of major currencies, rose 0.53% to 100.09 as demand for safe-haven assets returned.

Thursdays gains erased most of the dollars losses over the previous two sessions, which had been driven by earlier optimism about possible de-escalation in the Iran war, putting the US currency on track for another weekly gain.

At the same time, equities declined while oil prices surged, with Brent crude futures rising more than 6% to $108 per barrel following Trumps speech, which reignited concerns over ongoing supply disruptions.

Carol Kong, currency analyst at Commonwealth Bank of Australia, said Trumps remarks failed to reassure markets, noting that markets are beginning to realize the war is likely to escalate further before easing.

She added that the US dollar could rise further from here against all major currencies as markets recognize that the global economy is set to slow significantly.

The euro fell 0.51% to $1.1531, while the British pound declined 0.68% to $1.3216, both giving up part of their recent gains.

The Australian dollar, often seen as a proxy for global growth expectations, also fell 0.69% to $0.6881.

Meanwhile, the Japanese yen declined 0.5% to 159.64 per dollar, approaching the key psychological level of 160, which is seen as a threshold that could prompt intervention by Japanese authorities in the foreign exchange market.

Trumps remarks also pushed US Treasury yields higher, as rising oil prices fueled concerns about higher inflation, potentially limiting the scope for interest rate cuts.

This comes ahead of the release of the US nonfarm payrolls report on Friday, with markets expecting an increase of 60,000 jobs in March, according to a Reuters poll of economists.

Kyle Rodda, senior financial market analyst at Capital.com, said that any disappointing reading could unsettle markets and amplify warnings about stagflation.

He added that markets may experience further volatility ahead of the long Easter weekend.