USD/IRR: Iran Mediation Efforts Continue, Strait of Hormuz Tensions Linger

Geopolitical tensions surrounding Iran continue to weigh on broader forex sentiment as Tehran's foreign ministry confirmed that Qatar, Oman, and Pakistan are actively mediating between the US and Iran. The spokesperson noted that discussions are ongoing, offering a glimmer of hope that nuclear negotiations could resume at some stage, though talks do not appear imminent. This development comes alongside renewed concerns over the Strait of Hormuz, a critical oil transit chokepoint. The continuation of mediation efforts provides marginal relief to risk-sensitive currencies, though the lack of concrete progress keeps safe-haven demand elevated. USD pairs remain sensitive to any escalation, with USD/JPY and USD/CHF likely to react to shifts in risk appetite. Oil-linked currencies such as CAD and NOK also face indirect exposure through crude price volatility tied to Hormuz shipping disruptions. Traders should monitor headlines closely, as any breakdown in mediation could trigger sharp moves in risk-off assets and energy-correlated pairs.