Dollar Slides as Hormuz Deal Hopes Cool Oil Markets
Peace talk optimism pulls crude below $100 and sends risk currencies higher across Asia.
The U.S. dollar weakened across the board in Monday's Asian session after signals of a potential U.S.-Iran agreement to reopen the Strait of Hormuz pushed oil sharply lower and lifted appetite for riskier assets.
What Happened
The dollar index fell 0.1% to 98.95 - its weakest point since May 18.
Against the yen, the greenback dropped 0.2% to 158.9.
The euro gained 0.3% to $1.1636,
Sterling rose 0.3% to $1.3476
The Australian dollar climbed 0.5% to $0.7162,
The kiwi added 0.4% to $0.5869.
Thin liquidity amplified moves, with many global markets closed for public holidays.
Market Reaction
Oil led the action. Brent crude dropped 5.4% to $97.91 a barrel, while WTI fell 5.7% to $91.10, both breaking below the $100 mark on ceasefire optimism.
In crypto, Bitcoin edged up 0.5% to $76,961, while Ether was essentially flat at $2,091.
The Backstory
Over the weekend, Trump posted on social media that a peace memorandum with Iran was "largely negotiated," with both sides and Pakistani mediators reporting progress. But by Sunday, he walked it back, saying the U.S. blockade on Iranian ships in the Strait would "remain in full force and effect until an agreement is reached, certified, and signed." Iran had no immediate comment.
Why It Matters for Traders
The Strait of Hormuz handles roughly 20% of global oil flows. Any credible deal there moves energy, currencies, and risk sentiment simultaneously fast.
What to Watch
Any official statement from Tehran, or a signed agreement, would be the real trigger. Until then, expect the market to stay cautiously optimistic but jumpy on every headline.
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