Traders push the Euro higher as Iran submits a draft framework to the US, easing geopolitical tensions despite White House denial.
The Euro rose 0.21% against the US Dollar to 1.1649 on Wednesday, recovering from daily lows of 1.1623. The move followed reports that Iran presented a draft agreement to restore commercial shipping in the Strait of Hormuz within a month, in exchange for US military withdrawal and blockade relief.
Iran’s state media outlined the proposal, which excludes military vessels and involves joint oversight with Oman. The White House dismissed the draft as fabricated. US economic data showed a dip in ADP employment averages to 35.75K from 40.75K, though labor market conditions remained stable.
Dallas Fed’s Lorie Logan warned that prolonged Strait blockages could force significant cuts in global oil and gas consumption, depending on energy substitution capabilities.