Dollar holds steady as US-Iran peace talks show signs of strain. Investors remain cautious following stuttering negotiations over the Middle East conflict that has disrupted global energy markets. The Japanese yen sits just below the critical 160 level ahead of the Bank of Japan's policy decision. While Iran reportedly submitted a new proposal through Pakistani mediators regarding the Strait of Hormuz reopening, uncertainty persists about whether a lasting peace agreement can be reached. Analysts warn that markets may be overconfident about peace prospects. Oil prices continue climbing with Brent crude up one percent at $106.70 per barrel. The prolonged closure of the Strait of Hormuz, which carries one-fifth of global oil shipments, poses significant risks to economic growth worldwide. Market volatility could intensify sharply if negotiations collapse further.
