President Trump’s remarks on avoiding critical infrastructure strikes and downplaying nuclear risks weigh on USD while oil prices extend losses.
US President Donald Trump signaled a preference for avoiding military escalation with Iran, calling an underground nuclear site a minor issue and ruling out attacks on critical infrastructure. His comments suggest Washington aims to maintain diplomatic pressure without triggering broader conflict, potentially easing investor concerns over regional instability.
Prior to the remarks, the US Dollar Index (DXY) had gained ground but reversed course to trade flat near 101.53. Oil markets remained under pressure, with West Texas Intermediate (WTI) falling 1.24% to $80.20, reflecting lingering supply concerns amid geopolitical uncertainty.
The shift in tone follows heightened tensions earlier in the week, though Trump reiterated Iran cannot violate existing agreements. Markets appear to interpret the stance as a de-escalatory signal, though policy risks persist.