Safe-haven yen and Swiss franc gain as weekend Iran strikes unnerve markets

The safe-haven Swiss franc and Japanese yen firmed, while the euro slid as trading resumed after a weekend that saw the United States and Israel launch their most ambitious attacks on Iran in decades, killing Supreme Leader Ayatollah Ali Khamenei. The euro was last down 0.4% at around $1.1769 compared with around $1.18 in late Friday New York trade. It fell 0.6% on the Swiss franc to 0.90391, its lowest since 2015. The Reuters Inside Track newsletter is your essential guide to the biggest events in global sport. Sign up here. Advertisement · Scroll to continue The dollar was a touch lower versus the Japanese yen at 155.85 yen and was last down 0.3% against the Swiss franc . But the greenback strengthened on sterling and the Australian dollar , . U.S. and Israeli strikes -- and Iranian retaliation -- have sent shockwaves across the Middle East, and through sectors from shipping to air travel to oil on warnings of rising energy costs and disruption to business in the Gulf, a strategic waterway and global trade hub. Trading was thin late on Sunday European time, but deals in major currency pairs can set the tone. Trading desks have also in the past year become more accustomed to reacting to weekend developments and bring traders in when necessary. Advertisement · Scroll to continue How energy markets react will be a major driver of how stocks, bonds and currencies trade in response to developments in Iran. Analysts expect oil to open sharply higher on Monday -- traders say it is already up around 10% in over the counter markets. Safe-haven gold is also likely to jump, and global stocks to fall. Most Gulf equities fell on Sunday though Boursa Kuwait suspended trading and the UAE ordered its stock markets closed on Monday, a sign of the growing economic disruption sweeping the Gulf. Analysts said Chinese markets would also be in focus given China's reliance on Iranian oil exports. Brent crude oil on the rise as geopolitics flares Brent crude oil on the rise as geopolitics flares INVESTORS ARE SCENARIO PLANNING FX markets were among the first asset class to begin trading following weekend developments, as investors scrambled to work out what comes next. "We see two scenarios: first, contained disruptions to global energy markets, with limited implications for the world economy. Second, a more protracted, broader conflict leading to an oil shock," said Lombard Odier Chief Economist Samy Chaar.