The US dollar is treading water. With US-Iran peace negotiations generating a wave of optimism across global markets, traders are rotating into riskier assets instead of piling into the traditional safe haven of the greenback.
What’s actually happening in the talks
On May 21, Iran began formally reviewing a US proposal mediated by Pakistan, the latest step in a diplomatic process that has been building momentum for months. The groundwork was laid back in February with Oman-mediated talks, and a two-week conditional ceasefire that commenced on April 8 marked the most tangible progress toward dialogue.
Iran has put forward a 14-point framework for negotiations. The US responded with its own proposal, and the back-and-forth has kept markets oscillating between hope and caution.
Trump’s negotiation style, which tends toward dramatic gestures and abrupt pivots, has injected extra volatility into how markets interpret each headline coming out of the talks.
