Dollar and Oil Drop Amid Iran Peace Optimism
The US dollar fell against most major currencies on Monday (May 25), fueled by hopes of a deal to reopen the Strait of Hormuz, which pushed oil prices below $100 per barrel. USD/JPY weakened 0.2% to 158.94, while EUR/USD strengthened 0.31% to $1.11639 and GBP/USD rose 0.42% to $1.34865. The Australian and New Zealand dollars strengthened 0.5% and 0.37%, respectively.
Brent oil fell 4.5% to $98.9 per barrel, and WTI fell 4.4% to $88.98 per barrel, reflecting market expectations that oil flows through Hormuz could soon resume. Although US President Donald Trump called the memorandum of understanding with Iran "largely negotiated," the US blockade of the strait remains in place until a final agreement is reached.
The Iranian side confirmed that many topics have been discussed, but there is no sign of an imminent signing of a deal. US Secretary of State Marco Rubio stated that Washington will pursue Iran with "other means" if the deal fails.
Meanwhile, European markets and most of the US, Hong Kong, and the UK are closed for holidays, thinning liquidity. The market now awaits key economic data this week, including the US ADP jobs report and the Eurozone consumer confidence survey.
Oil and dollar prices remain sensitive to diplomatic developments, with investors monitoring tensions and progress in negotiations as factors determining short-term market direction. (Arl)
Source: Newsmaker.id
