LONDON, March 1 (Reuters) - The safe haven Swiss franc and Japanese yen strengthened, while the euro slid as currency 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 dropped 0.34% to $1.1776 compared with around $1.18 in late New York trade on Friday. It also fell 0.5% on the Swiss franc to 0.9039, its lowest since 2015.
The dollar slipped 0.26% to 155.65 yen, though
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, amid warnings of rising energy costs and disruption to business in the Gulf, a strategic waterway and global trade hub.
The reaction in energy markets 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 in Asia -- traders say it is already up around 10% in over the counter markets. Safe haven gold is also likely to jump, while stocks are expected to open lower.
Most Gulf equities fell on Sunday and Boursa Kuwait suspended trading after Iranian retaliatory attacks across nearby U.S. targets in Gulf cities fanned fears of prolonged regional instability. [.MIDEAST]
(Reporting by Alun John; Editing by Dhara Ranasinghe)
