Diplomatic progress between the US and Iran lifts risk sentiment, driving the euro higher and easing oil price pressures.
EUR/USD surged above 1.15 in European trading, supported by optimism over a potential US-Iran deal to reopen the Strait of Hormuz and coordinated yen intervention. The move marked a shift from earlier subdued trading amid geopolitical uncertainty.
Markets had traded cautiously as investors awaited clarity on Middle East tensions and US economic data, including upcoming non-farm payrolls. Crude oil prices fluctuated on mixed signals but held modest gains, while bond yields and equity indices remained near flat levels.
The yen’s slide paused after Japan and the US signaled readiness for further intervention if needed, with USD/JPY eyeing a rebound toward recent highs. Analysts noted Saudi Aramco’s 44% profit surge as a sign of energy market resilience amid the standoff.