The Swiss National Bank (SNB) has taken action to curb the surge in demand for the Swiss franc following the outbreak of war involving Iran, the United States, and Israel. The conflict, which began in February 2026, has seen a series of military exchanges, leading to heightened geopolitical tensions. The SNB’s intervention, which maintained a 0% policy rate, aimed to prevent excessive appreciation of the franc, a traditional safe haven during periods of instability. This move reflects the ongoing economic uncertainty driven by the Middle East conflict and the potential impact on Swiss exporters and price stability.
Key Takeaways
The SNB’s intervention indicates continued economic concerns related to the Iran war, suggesting heightened safe-haven demand for the franc.
Market pricing implies a low probability of military strikes by France, the UK, or Germany on Iran by the end of June, consistent with a 0.1% YES probability.
Diplomatic solutions appear less likely, as reflected by a decrease in the perceived probability of a final US-Iran nuclear deal by August 18, 2026.
