A teller shows US dollar and rupiah banknotes at a foreign currency exchange counter in Jakarta on May 15, 2025.
(Antara/Muhammad Adimaja)
The dollar was firm on Monday as uncertainty clouded a tentative US-Iran peace deal following threats from President Donald Trump to restart the war in the Middle East and Tehran's announcement it had closed the Strait of Hormuz.Despite rising tensions, US-Iran peace talks stretched into their second day in Switzerland under the terms of a memorandum of understanding reached last week to extend a ceasefire from April for at least another 60 days.
Chris Weston, head of research at Pepperstone, said it was not surprising how quickly adherence to the terms of the deal had broken down. "Ultimately, what matters to markets is the flow of cargo through the Strait of Hormuz."
Shipping data showed the number of ships that passed through the waterway fell sharply on Sunday after Tehran said it had closed the strait. That lifted oil prices with Brent crude futures climbing 1.30 percent to $81.62 a barrel.
