2026.04.1301:59:56UTC+00Dollar Rises as US-Iran Talks Fail

The dollar index rose back above 99 on Monday, recouping part of last week’s losses after President Donald Trump announced a blockade of the Strait of Hormuz, following the collapse of weekend peace talks between the US and Iran. Vice President JD Vance left Islamabad without reaching an agreement with Iranian negotiators, citing Tehran’s refusal to halt its nuclear weapons program. Iran, for its part, was reported to have demanded control over the Strait of Hormuz, war reparations, and the release of frozen assets. The effective closure of this critical shipping corridor has sent energy prices sharply higher and intensified inflation concerns, bolstering expectations that the Federal Reserve may delay interest rate cuts or even contemplate further rate increases. Against this backdrop, the dollar has strengthened and has emerged as the best-performing safe-haven asset amid the ongoing crisis.