Geopolitical risks in the Middle East drive demand for the safe-haven USD, pushing EUR/USD down 0.3% to 1.1626.
EUR/USD fell nearly 0.3% to 1.1626 on Monday as escalating Middle East tensions dampened optimism over a potential US-Iran peace deal. The Greenback strengthened on safe-haven flows, reversing earlier gains for the euro.
The pair had traded higher earlier in the session but reversed course as reports of renewed conflict in the region emerged. Prior to the decline, EUR/USD hovered near 1.1650, supported by broad USD weakness last week.
Markets remain sensitive to geopolitical developments, with the USD often benefiting from risk-off sentiment during periods of heightened uncertainty.