USD/IRR Steady as Iran-US Indirect Talks Continue via Pakistan Mediation

The US dollar is holding steady against safe-haven currencies as indirect diplomatic channels between Iran and the US remain active, easing geopolitical risk premiums in forex markets. Iranian and Omani technical teams met last week in Oman to negotiate a mechanism for safe transit in the Strait of Hormuz, a critical chokepoint for global oil shipments. Iran's foreign ministry confirmed that talks through Pakistani mediation are ongoing, with both sides exchanging comments on Iran's latest proposal. Tehran's key demands include the release of frozen Iranian funds and the lifting of sanctions. The continuation of dialogue has tempered fears of a military escalation that could disrupt oil flows and spike crude prices, which would typically strengthen safe-haven pairs like USD/JPY and USD/CHF while pressuring risk-sensitive currencies. Oil-sensitive pairs such as USD/CAD remain in focus, as any breakdown in negotiations could reignite supply concerns. Traders should monitor developments closely, as a diplomatic resolution would likely reduce volatility, while escalation could trigger sharp moves in commodity-linked and safe-haven currencies.