Dollar Holds Decline on Iran Deal Prospects

2026-04-14 01:26 By Jam Kaimo Samonte 1 min. read

The dollar index held its recent decline to around 98.3 on Tuesday, hovering at six-week lows as investors shifted toward riskier assets, driven by optimism that a deal between the US and Iran could eventually be reached.

Although the US failed to secure an agreement with Iran over the weekend, leading President Trump to announce a blockade targeting Iranian oil shipments, he later indicated that Iran had made contact and is now looking to resume negotiations.

The prospect of a longer-term US-Iran ceasefire deal and potential reopening of the Strait of Hormuz led to a retreat in oil prices, easing inflationary risks and tempering hawkish bets on Federal Reserve monetary policy.

Meanwhile, Fed Governor Stephen Miran noted that the energy shock stemming from the Iran conflict has not yet fed into longer-term inflation expectations, adding that he anticipates price pressures returning to the central bank’s target within a year.



News Stream
Dollar Holds Decline on Iran Deal Prospects
The dollar index held its recent decline to around 98.3 on Tuesday, hovering at six-week lows as investors shifted toward riskier assets, driven by optimism that a deal between the US and Iran could eventually be reached. Although the US failed to secure an agreement with Iran over the weekend, leading President Trump to announce a blockade targeting Iranian oil shipments, he later indicated that Iran had made contact and is now looking to resume negotiations. The prospect of a longer-term US-Iran ceasefire deal and potential reopening of the Strait of Hormuz led to a retreat in oil prices, easing inflationary risks and tempering hawkish bets on Federal Reserve monetary policy. Meanwhile, Fed Governor Stephen Miran noted that the energy shock stemming from the Iran conflict has not yet fed into longer-term inflation expectations, adding that he anticipates price pressures returning to the central bank’s target within a year.
2026-04-14
DXY Falls for 6th Session
The dollar index slipped to around 98.3 on Monday as investors shifted toward riskier assets, driven by optimism that a deal between the US and Iran could eventually be reached. Although the US failed to secure an agreement with Iran over the weekend, leading President Trump to announce a blockade targeting Iranian oil shipments, he later indicated that Iran had made contact and is now looking to resume negotiations.
2026-04-13
Dollar Rises as US-Iran Talks Fail
The dollar index climbed back to around 99 on Monday, recovering part of last week’s losses after President Donald Trump announced a blockade of the Strait of Hormuz following the failure of weekend peace talks between the US and Iran. Vice President JD Vance left Islamabad without securing an agreement with Iranian counterparts, citing their refusal to halt efforts to develop nuclear weapons, while Tehran reportedly demanded control of the Strait of Hormuz, war reparations, and the release of frozen assets. The effective closure of the critical shipping lane has driven energy prices sharply higher and heightened inflation risks, reinforcing expectations that the Federal Reserve may delay interest rate cuts or even consider rate hikes. These developments have supported the dollar, which also emerged as the strongest-performing safe-haven asset amid the ongoing crisis.
2026-04-13