USD Pressured as Strait of Hormuz Tensions Ease After US-Iran Accord

Geopolitical developments surrounding the Strait of Hormuz are reshaping risk sentiment across forex markets following the US-Iran accord struck over the weekend. Ship traffic through the critical waterway has resumed significantly, with 30 to 40 vessels crossing on Tuesday and Wednesday alone, while the UN's International Maritime Organisation evacuation scheme has successfully moved 57 vessels through the strait. The reopening of this vital oil transit corridor has eased supply disruption fears, putting downward pressure on crude oil prices and reducing safe-haven demand for USD/JPY and USD/CHF. The improved risk appetite is supporting commodity-linked currencies such as AUD/USD and USD/CAD, as reduced oil supply concerns stabilize energy markets. However, uncertainty persists as the article notes conditions remain unclear regarding the full normalization of maritime operations. Traders should monitor oil price reactions closely, as further stabilization could weigh on the US dollar's safe-haven premium while boosting risk-on currencies. Near-term price action in oil-sensitive pairs like USD/CAD will depend on whether shipping volumes return to pre-crisis levels.