Geopolitical risks and rising oil prices boost the USD, pressuring the EUR/USD pair near 1.1430 amid escalating US-Iran conflict.
The EUR/USD pair trades lower for a third consecutive day, hovering around 1.1430, as heightened US-Iran tensions drive demand for the USD. The US military conducted a ninth night of strikes against Iran, targeting capabilities used to attack commercial vessels in the Strait of Hormuz, while regional allies reported fresh attacks on Sunday.
Crude oil prices surged to their highest level since June 12, fueled by concerns over supply disruptions in the Middle East. The spike in oil prices raises fears of renewed inflation, potentially prompting central banks, including the Federal Reserve, to maintain a hawkish stance. This dynamic further supports the USD and weighs on the EUR/USD pair.
Traders are also eyeing this week’s European Central Bank meeting for further direction, though immediate focus remains on geopolitical developments and their economic implications.