The US dollar strengthened for two consecutive sessions as investors reacted to escalating tensions between the United States and Iran.
Recent military actions, including US strikes on Iranian sites and retaliatory attacks, have increased market unease. This instability comes despite ongoing high-level negotiations following a June memorandum of understanding.
Market sentiment suggests a diminished probability of a comprehensive US-Iran nuclear deal by August 2026. The likelihood of Iran agreeing to surrender its enriched uranium stockpile by the end of 2026 has also decreased.
Key developments to monitor include statements from US and Iranian officials on negotiation progress, any indications of resumed hostilities, and updates on technical talks regarding nuclear issues and sanctions.