Dollar wobbles as markets cling to hopes for Middle East peace deal

May 26, 2026

Investor optimism for a deal to reopen the Strait of Hormuz is boosting markets. Hopes of peace have lowered oil prices and eased pressure on emerging market currencies. Iran’s top negotiator is in Doha for talks. U.S. President Donald Trump indicated talks are progressing positively. However, fresh U.S. strikes on Iranian targets are also occurring.

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