Diplomatic progress between the US and Iran sparks risk-on sentiment, weighing on the USD and crude oil prices.
The US Dollar Index fell below 100.00, down over 1.5% last week, as diplomatic efforts between the US and Iran resumed. US President Donald Trump halted a planned strike, while Iran urged continued commitment to a June memorandum of understanding.
West Texas Intermediate crude oil plunged to around $78, shedding more than 8% on the day, reflecting reduced geopolitical risk premiums. US stock index futures rose 0.5% to 0.8%, mirroring improved market sentiment.
Analysts noted a sharp pullback in Brent crude following signs of de-escalation, with Danske Bank highlighting the shift in tone after Trump’s confirmation of renewed negotiations.