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25.03.202609:07:01UTC+00Euro Holds at $1.16 as Middle East Tensions Ease

The euro held steady around $1.16 amid rising hopes of de-escalation in the Middle East, following reports that Washington had proposed a 15-point peace plan to Tehran tied to a possible one-month ceasefire. Iran rejected the reports, insisting it was not engaged in talks and reiterating its deep mistrust of US diplomacy. Brent crude slipped below $100 a barrel, easing concerns over inflation fueled by high energy prices and prompting investors to scale back expectations for further interest rate hikes. ECB President Christine Lagarde cautioned that while the central bank is still assessing the conflict’s economic fallout, it remains ready to adjust policy “at any meeting” if surging energy costs threaten to ignite broader inflation. Money markets now imply just two ECB rate increases by year-end, down from three previously expected.

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