Dollar weakens, Brent crude slides on reports of US-Iran ceasefire extension – Firstpost

The US dollar weakened against major currencies on Friday while oil prices extended their weekly losses after reports suggested Washington and Tehran had reached a tentative agreement to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz.

Brent crude futures for July fell 35 cents, or 0.37 per cent, to $93.36 a barrel in Asian trading, while the more actively traded August contract declined 0.50 per cent to $92.24. U.S. West Texas Intermediate crude slipped 63 cents, or 0.71 per cent, to $88.27 a barrel.

Oil prices were on track for steep weekly declines, with Brent down more than 8 per cent from last week’s peak of $109.47 a barrel.

Markets have swung sharply in recent sessions as traders reacted to conflicting signals over the future of the three-month Iran conflict and the possible reopening of the Strait of Hormuz, through which roughly one-fifth of global oil and liquefied natural gas supplies pass.

The proposed agreement, according to reports, would extend the ceasefire for another 60 days and allow shipping traffic to resume through the strategic waterway while negotiators continue discussions on Iran’s nuclear programme. The deal is still awaiting approval from US President Donald Trump, while Iranian state media said negotiations had not yet been finalised.

The easing of geopolitical tensions reduced demand for traditional safe-haven assets, pressuring the dollar.

The dollar index, which measures the greenback against a basket of major currencies, hovered near 98.997 after falling 0.2 per cent in the previous session. The index was set to snap a two-week winning streak and end the week about 0.3 per cent lower.

The euro edged up to $1.1653, while the Japanese yen strengthened to 159.27 per dollar, moving further away from the closely watched 160 level that has previously triggered intervention concerns in Japan.

The New Zealand dollar also gained 0.2 per cent to $0.5946, its strongest level in more than two weeks.

However, caution persisted across financial markets after US Vice President JD Vance said Washington and Tehran were “close” to an agreement but “not there yet”. Vance said sticking points remained over Iran’s enriched uranium stockpile and enrichment activities.

“I can’t guarantee that we’re going to get there, but right now I feel pretty good about it,” Vance told reporters.

With inputs from agecies.