FX.co ★ Euro Recovers as Trump Delays Iran Strikes

The euro pared early losses to stabilize around $1.157 after President Trump announced a five-day delay to planned U.S. strikes on Iran’s energy infrastructure, describing recent discussions as “very good and productive” in a Truth Social post. The decision briefly eased market tensions ahead of today’s 48-hour U.S. deadline for Iran to reopen the Strait of Hormuz—a key flashpoint following Trump’s weekend warning of retaliatory action if Tehran failed to comply. Iran had threatened to hit Gulf energy and desalination facilities, raising the risk of a broader regional conflict. Even with this temporary reprieve, markets still expect three ECB rate hikes in 2026, after the central bank left rates on hold last week while lifting its inflation forecasts and downgrading growth projections amid mounting Middle East risks.