EUR/USD comes under renewed selling pressure on Monday as initial optimism surrounding a potential US-Iran peace deal fades amid escalating tensions in the Middle East.
At the time of writing, the pair trades around 1.1626, down nearly 0.30% on the day
Iran’s semi-official Tasnim News Agency reported on Monday that Tehran has suspended message exchanges with Washington over Israel’s continued military operations in Lebanon against Hezbollah. Meanwhile, Iran also accused the United States of violating the ceasefire after US Central Command (CENTCOM) said it carried out “self-defense strikes” on Iranian radar and drone facilities over the weekend. Iran’s Revolutionary Guard said on Monday they had targeted an air base used by US forces in retaliation for an attack on southern Iran.
Following the latest developments, the US Dollar (USD) and Oil prices extended their intraday rebound. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 99.20 after rebounding from a two-week low near 98.75 touched on Friday. West Texas Intermediate (WTI) Crude Oil is up more than 5%, trading around $92.50 at the time of writing.