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ForexMediumUpdated×9•Originally published 12 April 2026•Updated 14 April 2026•

1 min read

US and Iran Agree to Two-Week Ceasefire; Markets Experience Relief Squeeze

Donald Trump, US and Iran maps, oil barrels, pipelines, derricks, and rising charts with fire and arrows.

Key Facts

1The United States and Iran have begun their first high-level talks in Islamabad since the onset of the conflict.

about 2 months ago

Version History

6 additional sources confirmed this story

Version 9about 2 months ago

What changed: Updated the story to include specific technical levels for major currency pairs and the minor pullback in European equity markets following the initial rally.

Version 8about 2 months ago

What changed: The situation progressed from failed talks to a formal two-week ceasefire agreement, triggering a market relief squeeze and shifting the US Dollar's outlook to neutral.

Version 7about 2 months ago

What changed: Updated the story to reflect market sentiment shifting toward anticipating a second round of negotiations, causing a resumption in US Dollar selling and a reduction in the risk premium.

Version 6about 2 months ago

What changed: Updated the story to reflect a slight decline in the US Dollar's safe-haven status as traders pivot toward cautious optimism for a diplomatic breakthrough.

Version 5about 2 months ago

What changed: The status of the Islamabad talks shifted from 'uncertain' to 'failed' following weekend sessions, providing a fundamental catalyst for continued US dollar strength.

Version 4about 2 months ago

What changed: Market sentiment shifted from stabilization to a 'risk-off' phase, characterized by US Dollar gains and a direct lift in oil prices attributed to Iran tensions.

Version 3about 2 months ago

What changed: Added specific historical context regarding the US dollar's stabilization post-April 8 and oil's recovery from its most severe rout since 2020.

Version 2about 2 months ago

What changed: The narrative shifted from initial optimism to uncertainty regarding the Iran peace deal, reflected in the USD/JPY pair climbing back above the 159.00 threshold.

Version 1about 2 months ago

What changed: The story was updated to include US March CPI data missing expectations, which contributed to the Dollar's decline alongside the geopolitical developments.

Global financial markets have transitioned into a consolidation phase following the US-Iran ceasefire agreement, with GBP/USD topping the 1.3400 level on cautious optimism. Meanwhile, EUR/USD is encountering significant technical resistance at the confluence of its 100 and 200-day moving averages between 1.1672 and 1.1685. The USD/JPY pair showed signs of stabilization, rising toward 159.00 after touching an overnight low of 158.00. In equity markets, major European indices saw a minor pullback, with the DAX retreating over 1% following a substantial 5% gain in the previous session. This shift indicates that the initial relief rally is now facing technical testing as traders await further geopolitical clarity. Market participants remain focused on key support and resistance levels while monitoring the durability of the diplomatic truce.