Euro climbs as Oil prices tumble on US-Iran negotiation hopes

EUR/USD gains momentum as falling Oil prices and US Treasury yields weigh on the US Dollar.
Reports of preliminary progress on a US-Iran diplomatic proposal raise hopes of easing tensions in the Middle East.
The proposal reportedly includes confidential nuclear inspections and payments linked to frozen Iranian funds.

EUR/USD extends its intraday advance during American trading hours on Tuesday as Oil prices reverse sharply following reports of progress toward renewed US-Iran negotiations, pushing the US Dollar (USD) and US Treasury yields lower. At the time of writing, the pair trades around 1.1251, up 0.35% on the day.

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Israel’s Channel 12 News reported that a proposal presented by Pakistan’s army chief to senior Iranian officials has received American approval and preliminary agreement from Iran. The plan reportedly includes transferring interest earned on $6 billion of Iranian funds frozen in Qatari banks to Tehran, partially addressing Iran’s demand for the return of frozen assets.

Channel 12, citing a Qatari report, also said Tehran has agreed under the proposal to a confidential visit by the International Atomic Energy Agency (IAEA) to Iranian nuclear facilities. The visit would not be publicly announced.

The reports follow comments from Qatar’s Foreign Ministry spokesperson Majed al-Ansari, who said negotiations between Iran and the United States are continuing despite growing tensions and fears of renewed fighting.

Following the reports, West Texas Intermediate (WTI) Oil retreats to around $95.65 after briefly climbing above $100 earlier in the day. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 101.55, its lowest level since October 1, extending its pullback from the 18-month high near 103 touched last week. The benchmark 10-year US Treasury yield stands near 5.08%, down 6 basis points on the day.

Hopes of diplomatic progress between the United States and Iran offer some optimism over a potential recovery in shipping through the Strait of Hormuz. However, the situation remains fragile as Houthi attacks on Saudi energy infrastructure and a sharp rise in attacks on vessels passing through the strait keep supply risks elevated and inflation concerns alive.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.29%	-0.61%	-0.32%	-0.44%	-0.44%	-0.43%	-0.17%
EUR	0.29%		-0.34%	-0.02%	-0.15%	-0.14%	-0.14%	0.12%
GBP	0.61%	0.34%		0.34%	0.22%	0.22%	0.20%	0.45%
JPY	0.32%	0.02%	-0.34%		-0.14%	-0.11%	-0.14%	0.14%
CAD	0.44%	0.15%	-0.22%	0.14%		0.02%	0.01%	0.27%
AUD	0.44%	0.14%	-0.22%	0.11%	-0.02%		-0.00%	0.26%
NZD	0.43%	0.14%	-0.20%	0.14%	-0.01%	0.00%		0.27%
CHF	0.17%	-0.12%	-0.45%	-0.14%	-0.27%	-0.26%	-0.27%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).