Geopolitical risks in the Strait of Hormuz and Bab el-Mandeb push oil higher, pressuring the Euro ahead of US CPI data.
EUR/USD dipped 0.06% to 1.1535 on Tuesday, retreating from a seven-week high of 1.1581. The decline comes as stalled US-Iran negotiations keep geopolitical tensions elevated, disrupting key shipping routes and supporting oil prices near $82.50.
Iran has ruled out further talks with US President Donald Trump until his term ends on January 20, 2029, dimming prospects for a swift resolution. The Eurozone’s reliance on energy imports makes it vulnerable to rising oil costs, which could weigh on growth.
Across the Atlantic, the USD remains supported as traders await US inflation data, which could influence Federal Reserve policy expectations.