USD Firms as Trump Signals Major Iraq Oil Deals and Trade Push

The U.S. dollar held firm as President Trump announced plans for expanded oil and trade deals with Iraq during a meeting with the Iraqi prime minister at the Oval Office. Trump stated the U.S. would be 'taking a lot of oil out' of Iraq and highlighted that several countries had expressed interest in investing directly in the United States rather than paying transit fees for Strait of Hormuz passage. The comments carry significant implications for energy markets and commodity-linked currencies. Increased U.S. oil procurement from Iraq could exert downward pressure on crude prices over time, potentially weighing on the Canadian dollar and Norwegian krone. The investment redirection narrative also underscores Trump's broader strategy to attract capital inflows into the U.S., which is structurally supportive for the dollar. For forex traders, the key takeaway is the intersection of energy policy and trade diplomacy, which could influence USD pairs, particularly USD/CAD and broader risk sentiment. Near-term, oil price reactions will be the primary transmission channel to currency markets.