The move eases geopolitical tensions in a key oil transit route, triggering a slight decline in the USD Index.
US President Donald Trump stated that a naval blockade in the Strait of Hormuz will be lifted, allowing ships stranded in the region to begin returning home. The announcement was made via a post on Truth Social on Friday, signaling a potential de-escalation in Middle East tensions.
The Strait of Hormuz is a critical chokepoint for global oil shipments, and prior blockades have historically disrupted energy markets. No prior consensus or official economic data preceded the announcement, though geopolitical risks in the region have weighed on investor sentiment in recent weeks.
The USD Index fell 0.15% to 98.83 following the news, reflecting renewed selling pressure on the dollar amid reduced risk aversion.