Euro Hits $1.18 on Middle East Talk Hopes

2026-04-14 09:12 By Joana Ferreira 1 min. read

The euro climbed to $1.18, reaching its highest level since before the outbreak of war in late February, as investors grew optimistic about the potential for Middle East peace negotiations.

This optimism persisted even as the US maintained its blockade of Iranian ports, creating a mixed geopolitical backdrop.

Negotiating teams from the US and Iran may return to Islamabad this week, just days after their latest round of talks concluded without a breakthrough.

The prospect of renewed dialogue was enough to spark a shift toward riskier assets, while oil prices retreated below $100 per barrel.

However, inflationary pressures driven by elevated energy costs are likely to persist as long as the Strait of Hormuz remains closed, prompting markets to expect a more hawkish European Central Bank.

Traders now price in at least two rate hikes by year-end.



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